Rogers sees revenues & profits up but Euro depreciation still cause for concern
The board noted that the depreciation of the Euro against the Mauritian Rupee remains a cause for concern, and the group is taking measures to mitigate its impact. (Image: Company)
Mauritius-based conglomerate Rogers and Company Limited registered a 17% rise in revenue to Rs 3.6 billion for the 6 months ended December 2014, compared to the year-ago period, while profit after tax for the first semester grew 53% to Rs 503 million.
On a sector-wise basis, the aviation sector reported a Profit after taxation (PAT) of Rs 31 million, lower by 16.2% over the year-ago period.
This decrease is however explained by the performance of the sector remaining adversely affected by the General Sales Agent (GSA) operations in Madagascar and Reunion Island.
Financial Services has registered a slight decrease of 1.9%, compared to last year at the same period, to be set at Rs 52 million. This sector’s performance was essentially driven by the Group’s associate stake in the Swan Group.
Hospitality achieved a PAT of Rs 163 million, a rise of 85% compared to last year where it was Rs 88 million.
In spite of the depreciation of the euro vis-à-vis the Mauritian rupee, the VLH operations showed improved results on the back of lower depreciation charges and gains on treasury management transactions.
The Logistics sector remained stable with a PAT of Rs 55 million, the same as last year. However, results of the sector include the first time consolidation of the results of its newly-acquired 80% interest in ERC Limitée, a specialist transportation business.
The property sector posted a PAT Rs 94 million at the end of the 6 months ended December 2014, lower by 4% compared to last year where it was Rs 98 million.
According to the abridged quarterly results ended 31 December 2014 there was a significant improvement in the earnings of Ascencia, the effect of which was dampened by the absence of project development fees which arose in the previous year.
The PAT of Real Estate & Agribusiness for the same period amounted to Rs 106 million, a vast improvement over the loss of Rs 45 million for the 6 month ended December 2013.
This significant increase in PAT is mainly attributable to a transaction relating to 29 plots of land at Les Villas de Bel Ombre.
Finally, the technology sector recorded a PAT of Rs 5 million, a dip of 54% compared to last year where it was Rs 11 million.
Additional one-off costs incurred by AXA Customer Services Ltd coupled with delayed materialisation of project contracts at the level of EIS impacted negatively on the sector’s performance.
On a quarterly basis, we note that the various sectors are performing quite well, with the hospitality sector at the top of the list with Rs 231 million; followed by Real Estate and Agribusiness with Rs 88 million for the three months ended December, 2014 and finally property, at Rs 43 million.
Cash generated from operations before working capital changes amounted to Rs 626.2 million compared to Rs 405.1 million in the year-ago period.
Finally, the depreciation of the Euro against the Mauritian Rupee is a cause for concern, and the group is taking measures to mitigate its impact. Group PAT for this financial year, excluding fair value gains and exceptional items, is expected to improve.