CIEL Limited posts robust financial results for the year ended 30 June 2022
For the year ended 30 June 2022, CIEL Limited reported a robust set of financial results, notwithstanding the backdrop of macroeconomic disruptions and a weakening global economy.
- Excellent financial performance with profitability significantly above pre-COVID years
- Well-diversified portfolio and ongoing focus on margin protection led to an EBITDA margin of 17.8% (2021: 14.0%)
- Profit after tax increased nearly five-fold to reach MUR 2.2 bn with all clusters back to profitability
- Earnings per share more than doubled to reach MUR 0.77 (2021: MUR 0.37)
- Final dividend of MUR 0.16 cents per share declared on 29 June 2022, bringing the total dividend for the year to MUR 0.21 cents per share back to the pre-COVID level
- Positive cash flow generation allowed for higher capital expenditure and working capital requirements, as Free Cash Flow increased by 65% to reach MUR 1.6 bn
- Strong balance sheet enhanced by strict financial discipline with Net debt reduced by MUR 1 bn to reach MUR 13.1 bn, bringing the Group’s gearing ratio to 33.2% down from 39.0% in the prior year
- Confidence maintained in the Group’s business model and long-term growth potential, underpinned by proven track record of execution
Commenting on the results, Jean-Pierre Dalais, Group Chief Executive of CIEL Limited said: “The growth of CIEL Group's results confirms the soundness of our diversification strategy, both geographically and sectorally, as well as the discipline with which all teams are implementing it. This performance supports our confidence in the growth potential in the coming years, we remain however vigilant given the current uncertainty on the global economic front."
The Group improved performance due to positive contributions from all clusters
Revenue increased by MUR 5 bn, to reach MUR 15.5 bn for the year ended 30 June 2022, largely due to an excellent performance from the Indian woven shirt operations and overall good momentum in the order books. EBITDA rose by 45% to MUR 1.7 bn, notwithstanding constraints from supply chains as well as higher input costs. The cluster posted a profit after tax of MUR 744M for the year, up 19% on the prior year, and included the MUR 287M closure costs of Consolidated Fabrics Limited operations in Mauritius as part of the partnership signed with SOCOTA. This has been disclosed as a loss from discontinued activities in the income statement.
The Finance cluster continues to be a good contributor to the Group as it strengthens focus on its core assets. Revenue for the year increased to MUR 4.5 bn, a 20% increase on the prior year. EBITDA for the year increased by 11% up from MUR 1.27bn to MUR 1.41 bn, largely due to the healthy growth in the loan book of BNI and lower provisioning needs at Bank One. Profit after tax for the cluster was MUR 703M, a 16% increase on the prior year, however subdued by the reduced contribution from BNI due to the increase in IFRS 9 provisions to MUR 447M.
The cluster posted a 19% revenue increase to MUR 3.56 bn, against MUR 3.0 bn in the prior year. This result was driven by strong momentum in COVID-related treatments at C-Care in the first nine months. EBITDA for the cluster increased by 47% on the prior year to reach MUR 817M. Profit after tax increased by 46% year on year to MUR 432M from MUR 296M, enhanced by the sale of the Nigerian business in the first quarter of MUR 62M as well as another positive contribution from the Ugandan operation in the current financial year.
Hotels & Resorts
The Hotels & Resorts cluster had a better-than-expected performance for the year ended 30 June 2022. Revenue increased by MUR 4.3 bn to MUR 4.8 bn as the cluster was able to capitalise on the pent-up demand from travellers with the easing of sanitary restrictions after borders opened on 1 October 2021. While occupancy remained behind pre-COVID levels, Average Daily Rates rose by 27.1% leading to an EBITDA of MUR 1.2 bn, closing in on the pre-COVID level of MUR 1.5 bn. Profit after tax was MUR 210M compared to the loss of MUR 2.1 bn at year end 2021.
Foundations for the cluster are now in place across three pillars. Firstly, at Ferney, the receipt of the Smart City Certificate means the development schedule for the master plan can now move forward. Secondly, the non-core industrial properties in the Group have now been transferred to the newly incorporated property vehicle, named Evolis. Finally, CIEL Properties Development will work in conjunction with other clusters to develop properties. As part of this pillar, the sale of La Pirogue Residences for Sun Resorts was launched in the fourth quarter. The cluster posted a profit after tax of MUR 137M, boosted by the revaluation of investment properties on transfer to Evolis, amounting to MUR 228M, despite continued set-up costs for the cluster in its first two years of operation.
Alteo Group delivered revenue of MUR 12.1 bn, up 27% on the prior year showing solid growth, buoyed by its sugar and property operations. The slight decrease in earnings can be explained by the prior year benefitting from positive one-off items. CIEL’s share of profit attributable decreased by MUR 33M to MUR 212M for the year under review.
Download our Financial Statement for the year ended on 30 June 2022