New Mauritius Hotels sees profits dip by 17.6%; Sun Resorts losses widen by 62%
New Mauritius Hotels saw profits down by 17.6% to Rs 438.9 million for its first quarter on the back of the weakness of the Euro, while Sun Resorts found losses widening by 62% to Rs 52 million, after exceptional items of Rs 94 million in respect of restructuring, branding and Shangri-La’s transaction costs. (Image: Sun Resorts)
Mauritian hospitality major New Mauritius Hotels saw profits fall 17.6% to Rs 438.9 million for the first quarter of its current financial year, ending 30 September 2015, on the back of the weakness of the Euro, which remains a cause of concern going into the second quarter as well.
However, the hospitality major that runs hotels under the Beachcomber brand, saw revenues rise by 5% to Rs 2.72 billion for the quarter ended December 31, 2014, compared to Rs 2.59 billion in the year-ago period.
Of this, Mauritius contributed largely to the revenue with Rs 2.06 billion; followed by Morocco with Rs 280.1 million, and finally, all others taken together contributed Rs 371.6 million.
With the recognition of additional profit on the sale of villas in Marrakech and all hotels being in operation, management expects the results of the second semester to be better than those of the previous year.
The group’s EBITDA dropped from Rs 861 million last year to Rs 795 million this year. With depreciation charges and finance costs (which now include Marrakech figures) increasing from Rs 121 million to Rs 150 million and from Rs 145 million to Rs 181 million respectively, profit for the quarter fell by 17.6% to Rs 439 million.
Based on segmental information, Mauritius contributed Rs 727 million to the EBITDA figure of last year; Morocco contributed merely Rs 1.8 million as a start-up project, while others contributed Rs 65 million.
The group’s EBITDA stood at Rs 795 million, where the Hotel segment contributed Rs 677 million, the property segment contributed Rs 21 million and others came to Rs 96 million.
On the other hand, net cash flows generated from operating activities were set at Rs 271 million which is a marginal decrease of 3.5% compared to the quarter ended December 2013.
The decrease in cash flow is explained from investments in long term projects, such as Marrakech and Les Salines, which is taking longer to yield anticipated results. The Board has countered that it will soon finalise the capital restructuring scheme it deems most appropriate in the present circumstances.
Coming to the other hospitality major which also released its results last week, Sun Resort’s revenue for the full year ended December 31, 2014 rose 5% to Rs 4.21 billion but losses widened by 62% to Rs 52 million, after exceptional items of Rs 94 million in respect of restructuring, branding and Shangri-La’s transaction costs.
However, on a like-for-like basis, removing the effect of the exceptional items of Rs 94 million, the group reversed its negative results of Rs 58 million in 2013 to record net recurring profit after tax of Rs 49 million in this transformation year.
The operating profit for the twelve months ended December 31, 2014 rose 1.9% to Rs 309 million compared to Rs 303 million in the year-ago period.
Under consolidated geographical and segmental information, geographical revenue for Mauritius was amounted to Rs 99 million compared to last year where it was RS 106 million; Maldives registered Rs 43 million against Rs 64 million last year; and finally, others notched up Rs 4 million against Rs 10 million last year.
At the group level, net cash and cash equivalents at 31 December 2014 came to Rs 96 million compared to last year at the same period where it was Rs – 239 million.
On a yearly basis, a growth of 4.6% and 7.1 % was registered in tourist arrivals in the local industry and the Maldives respectively.
The group managed to recover from a weak first quarter to improve its operational performance over last year as a result of the new pricing and marketing strategy rolled out at the beginning of the year 2014. Thus, group occupancy for the year improved to 67.6% from 62.0% in 2013, outperforming the industry’s growth in arrivals.