Terra Mauricia lowers losses as sugar cluster shows improved performance
Mauritian conglomerate Terra Mauricia Ltd lowered itslosses for the semester ended 30June15 to Rs 26.5 million, an improvement of Rs 143.9 million compared to the same period last year, upon better performance of the sugar cluster as sugar prices stabilised.
Mauritian conglomerate Terra Mauricia Ltd realised lower losses for the six months ended 30 June 2015, with losses being capped at Rs 26.2 million amidst a revenue rise of 5.6% to Rs 1,383.7 million.
The group loss for the semester amounted to Rs 26.5 million, an improvement of Rs 143.9 million compared to the same period last year.
The losses recorded by the sugar segment for the semester stood at Rs 191.7 million, compared to Rs 323.5 million last year.
This improvement is explained by three factors.
First, stable, albeit low, sugar prices prevailed in the current semester, which led to a turnaround of Rs 66 million in the valuation of standing crop at reporting date.
Secondly, 2014 was negatively impacted by the carryover of a Rs 32.5 million deficit from the previous crop.
Finally, there was a Rs 20 million improvement in operating costs during the first six months of 2015. This, coupled with improved semester results of their Ivorian associate, contributed to contain the overall losses incurred by the sugar segment.
In the energy cluster, turnover was slightly down as a result of a reduced electricity tariff. However, segment results, although marginally impacted by a weaker rupee, remained at par with last year, mainly due to lower input costs and ever improving cost controls.
The main revenue generating segment during the period under review was the Brands division, mainly driven by turnover. This segment showed slightly improved results for the semester, mitigating the lackluster performance of the distilling operations.
Finally, the good performance of associates, coupled with higher revenue from land sales, translated into an enhanced profitability for the semester.
In terms of future prospects, other than the sugar segment which will substantially improve over last year but is still unlikely – at current prices – to be profitable, all other segments and associates are performing well. Barring exceptional events, group results are expected to show a marked improvement on last year.