New Mauritius Hotels sees 29% drop in profits on EU woes
The company, operating under the Beachcomber brand, went on to forecast improved prospects for both the first and second quarter of the current financial year to September 2014. (Image: Company)
Mauritius-based luxury hotels chain, New Mauritius Hotels (NMH), operating under the Beachcomber brand, reported a 29 percent fall in full-year pretax profit on the back of lower European footfalls.
The hospitality major noted that profits fell to Rs 428.07 million ($14.25 million) in the year ended September 30, 2013 against Rs 602.93 million in the year-ago period.
Moreover, revenues also witnessed a marginal decline of 3.6%, dropping to Rs 7.82 billion ($256.81 million) in the year ended 30 September 2013 from Rs 8.11 billion in the corresponding period of 2012.
The company owns nine hotels in Mauritius, one in the Seychelles and a recently launched property in Morocco and is the oldest hotel group on the island.
During the year under review, tourist arrivals grew by 1.9% at national level, said the company report.
“A drop of 4.5% was, however, recorded in arrivals from European countries with France and Italy, two of our main markets, registering reductions of 10% and 23% respectively. This is mainly attributable to less favourable air access conditions in terms of connectivity and pricing,” the company noted in a statement.
Being an industry bellwether as one of the biggest hotel groups in Mauritius, the company went on to forecast improved prospects for both the first and second quarter of the current financial year to September 2014.
Earnings for the three months to December 31 were expected to be 10% higher than the year-ago period, it noted in a statement.
Moreover, forward bookings on hand for the second quarter to March 2014 were also indicated as ‘comfortably higher’ than last year.
The results were released after trading on the stock exchange of Mauritius had closed. Shares in the company were unchanged at Rs 90 at the close of trade on Tuesday.