CIEL Group reports increased profits for the first half

Key highlights


The Group’s revenue stood at MUR 17.8 bn, representing a decline of 2%, principally attributable to a slowdown in the Textile cluster. However, this decrease was partly offset by double-digit growth in the Hotels & Resorts, Finance, and Healthcare clusters.

Compared to the same period last year, EBITDA increased by 27% to MUR 4.1 bn from MUR 3.2 bn. The EBITDA margin improved to 22.9% from 17.8%, primarily driven by growth in the Hotels & Resorts and Finance clusters and boosted by the profit on sale of land of MUR 362M in the Property cluster.

Profit after Tax (“PAT”) rose to MUR 2.7 bn from MUR 2.0 bn, a 37% improvement on the comparative six-month period.

Earnings per Share grew by 28% compared to the previous first half reaching MUR 0.95, as Profit Attributable to Owners reached MUR 1.6 bn from MUR 1.2bn in the same six months last year.

Free Cash Flow increased by MUR 259M to reach MUR 1.8 bn from MUR 1.6 bn in the prior period.

Group Net Interest-Bearing Debt stood at MUR 12.0 bn, with a gearing ratio of 27.1%. compared to 28.6% at 30 June 2023.

Commenting on the results, Jean-Pierre Dalais, Group Chief Executive of CIEL Limited said: “Our half-year results reflect our agility and capacity to seize market opportunities, notably through our strategic positioning in high-potential geographic areas such as Africa and India. We continue to focus on enhancing our portfolio and delivering steady value to our stakeholders. We will remain financially prudent; ensure we boost our operational excellence whilst being active on new investment opportunities.”


Cluster Review

Hotels & Resorts

The revenue in the Hotels & Resorts cluster increased by 10% for the first six months of the financial year to reach MUR 4.5 bn from MUR 4.1 bn. This was driven by much improved average room rates, resulting in a 15% increase in RevPAR (revenue per available room) despite slightly lower occupancy in the period under review. EBITDA reached MUR 1.5 bn, up MUR 239M from the same period last year, amid inflation and increased staff costs. PAT grew by 37% to MUR 960M from MUR 701M.


Revenue for the cluster decreased by 15% to MUR 8.1 bn from MUR 9.5 bn, largely due to the current softer demand from the global retail markets which negatively impacted the order books in certain segments. Despite these headwinds, the Woven and Knitwear operations in Asia continued to exhibit solid performances. EBITDA fell to MUR 771M from MUR 953M and the cluster posted a PAT of MUR 325M, compared to MUR 555M in the same period last year.



The Finance cluster recorded a revenue increase of 12% from the previous half-year period to MUR 2.8 bn from MUR 2.5 bn and EBITDA increased by 59% to MUR 1.1 bn. The main driver being higher net interest rate margins improving net banking income at BNI Madagascar. PAT stood at MUR 783M, up from MUR 528M in the comparable period after accounting for CIEL’s 50% share of Bank One’s profit of MUR 174M.



Strong operational performances, both in Uganda and in Mauritius led to a 20% increase in revenue to MUR 2.3 bn from MUR 1.9 bn. EBITDA improved to MUR 442M from MUR 398M, demonstrating efficient management amidst an environment of rising inflation and increasing operational costs. PAT decreased by 10% to MUR 160M from MUR 177M, due to escalated depreciation and financing expenses related to the cluster’s major capital investment, especially in technological upgrades.



In the Property cluster, revenue increased by 6% to MUR 118M and EBITDA rose to MUR 405M from MUR 15M, primarily due to a profit of MUR 362M from the sale of land at Ferney. Whilst we remain cognisant of the cyclical nature of these inflows, this does represent the realisation of the medium-term strategy to transform the Group’s non-core assets into cash. PAT showed a 66% growth on the corresponding period, reaching MUR 345M. Evolis Properties successfully issued notes worth MUR 640M, which represents the first tranche of its fundraising program. These funds are designated for building regeneration and accelerating the expansion of its asset portfolio.



CIEL’s profit share from Alteo Limited (“Alteo”) and MIWA Sugar Limited (“MIWA”) for the first six months of this financial year rose to MUR 308M from MUR 185M. Alteo’s profits doubled in the first six months, stemming from the robust performance of its agro business. This was due to a much-improved sugar price and increased production, complemented by reduced finance costs and effective cost management across its operations. MIWA benefitted from the turnaround in its Kenyan operations as a result of consistent cane supply, sustained crushing and favourable pricing conditions.