15 Nov 2018

    CIEL Limited (‘CIEL’) is a diversified investment group headquartered in Mauritius, with interest in five sectors, namely Textile, Hotels & Resorts, Financial Services, Agro & Property and Healthcare, present across Africa, Asia and the Indian Ocean.

    The comparative September 2017 quarter figures were restated mainly to reflect the correct accounting treatment for sale and finance leaseback transactions of the IHS rooms in the Hotels & Resorts cluster.

    At MUR 6.1bn, Group revenue for the quarter under review increased by 10% (2017 Restated: MUR 5.5bn) while EBITDA rose to MUR 616M (2017 Restated: MUR 387M) generating a higher year-on-year EBITDA margin of 10.1%
    (2017 Restated: 7.0%).

    The Group recorded a Profit after Tax (‘PAT’) of MUR 129M (2017 Restated: (MUR 51M)) for the period under review explained by the improved performance of most clusters within the Group as follows:

    •    The Textile cluster posted good results across all its segments, particularly the Woven segment, on the back of higher sales volumes at better margins. Floreal Knitwear’s industrial plant in Antsirabe, Madagascar and the Knits production plant in Coimbatore, India have also improved in the September 2018 quarter compared to the same period in prior year.

    •    In the Hotels & Resorts cluster, SUN achieved satisfactory growth mainly owing to La Pirogue being fully operational in the September 2018 quarter compared to the same period in prior year when it was partially closed for renovations. Despite the low seasonality of the hotel sector in this period of the year, SUN’s average daily rate (‘ADR’) and occupancy rate have also increased compared to the September 2017 quarter. SUN’s luxury resort Kanuhura, Maldives, has shown progress in terms of revenue although the trading conditions therein remain competitive. Based on forward bookings, management expects a better financial performance for the first semester.

    •    The Finance cluster maintained good results with a 14% increase profit after tax year-on-year owing to the solid performance of its banking activities. Bank One has achieved good results attributable to most of its business lines and BNI Madagascar S.A.’s results remain stable despite the economic slowdown in the period preceding the elections. The fiduciary operations of the cluster – MITCO – has however recorded a lower performance this quarter due to uncertainty prevailing in the sector.

    •    The Agro & Property cluster continue to be negatively affected by Alteo Limited’s (‘Alteo’) local sugar operations due to the unfavourable price environment. The drop in Alteo’s results was partially alleviated by the beginning of a turnaround in Kenya’s results which showed a marked improvement in production and sales volume resulting from a higher sugar cane availability. Sugar prices in Kenya’s domestic market also improved in the September 2018 quarter.

    •    The Healthcare cluster has performed better this quarter compared to the same period last year owing to the sustained track record of Fortis Clinique Darne (‘FCD’) and the good progression of Wellkin Hospital (‘Wellkin’). Patient care and medical excellence remains at the core of The Medical and Surgical Centre Limited (‘MSCL’). The trading environment in Nigeria and Uganda remains difficult.

    CIEL Group’s profit attributable to ordinary shareholders stood at MUR 88M (2017 Restated: (MUR 25M)) for the quarter under review.

    The first quarter of the financial year shows encouraging results across most clusters despite being characterised by the seasonally low activity of the hotel sector.