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CIEL Group profit up by 352%

Ebène Skies, Head Office of CIEL Group

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CIEL Group profit up by 352%

Profit After Tax of Ciel Group grow by 352% for the last quarter ended 30 september compared to the corresponding period in 2017. The PAT of CIEL Group was Rs 129 million for the last quarter, compared to a loss of Rs 52 million in 2017. The Board explained that those figures reflects a net improvement in performance of most of the clusters of the Group. 

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. 

Profit After Tax of Ciel Group grow by 352% for the last quarter ended 30 september compared to the corresponding period in 2017.
Jean Pierre Dalais, CEO of CIEL Group

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 have 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. At Company level, the Net Asset Value (‘NAV’) per share stood at MUR 8.08 as at 30 September 2018 – down 4.8 percentage points from MUR 8.49 as at 30 June 2018 – reflecting mainly the fall in the share prices of CIEL Textile Limited (‘CTL’), SUN and the drop in the banking multiples used to value CIEL Finance Limited’s local banking investment. 

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