The CIEL Group displays a solid performance

CIEL Group’s financial results for the first quarter of 2024 highlight its resilience and growth strategy, despite persistent inflationary and wage pressures. The turnover amounted to Rs 8.8 billion, supported by the solid performance of the health and finance divisions.

The group continues its ambition to become a leader in its key sectors through strategic investments. Among these, the renovation of the Shangri-La Le Touessrok and the increase of CIEL’s stake in C-Care International Limited from 53.03% to 63.47%. Despite the pressures linked to inflation and salaries, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) amounted to Rs 1.5 billion and remains stable compared to the previous period despite the impact of the temporary closure of Shangri-La for renovation.

Profit after tax reached Rs 772 million, supported by a solid performance from the health and finance divisions, but slightly impacted by a drop in the contribution from the agro division. Profit attributable to shareholders amounted to Rs 455 million, corresponding to a dividend per share of Rs 0.27 compared to Rs 0.35 for the previous period. Free cash flow reached Rs 451 million and reflects strategic investments in the hotel and healthcare divisions as well as the working capital requirements of the textile division. The combined effects of the investments brought the net debt to Rs 13 billion. However, the debt ratio remains stable at 27.7% as of June 30, 2024.

Explaining these results, Jérôme De Chasteauneuf, Group Finance Director of CIEL Ltd, states: “In an uncertain global economic context, rigorous and disciplined management of our investments will be essential to generate strong results and create added value for our stakeholders. This approach will enable us to sustain our long-term growth while strengthening our ability to seize opportunities in a constantly evolving environment.”

Analysis of the different poles

• The hotel division, with Sunlife, recorded a good performance despite the low season period. Despite the temporary closure of Shangri-La Le Touessrok for renovation, an EBITDA of Rs 230 million was recorded. Net profit remains modest at Rs 12 million, but the outlook is positive with the upcoming reopening of the hotel, the increase in reservations, and the development of the La Pirogue residences.

• The finance division continues to perform well, with turnover up 10%, thanks to the performance of BNI Madagascar and Bank One. The latter generated a profit of Rs 115 million. Net profit after tax reached Rs 472 million, despite a contraction in interest margins due to higher financing costs. EBITDA stood at Rs 551 million, down slightly compared to the previous year due to this contraction.

• The textile sector posts a turnover of Rs 4.2 billion, supported by optimized cost management and better operational efficiency. EBITDA rose 15% to Rs 424 million, and profit after tax climbed 23% to Rs 184 million, thanks to growing demand for operations in India.

• The health division continues its growth with a turnover of Rs 1.3 billion (+19%). EBITDA stood at Rs 273 million (+19%) and net profit after tax increased by 26% to Rs 112 million. Key projects in Mauritius, such as the oncology unit in Darné, the expansion of capacities at Wellkin and the new clinic in Grand-Baie, contribute to this positive dynamic. In Uganda, a 24% growth in revenue reflects increased admissions and consultations.

• The real estate division recorded an 18% increase in turnover, reaching Rs 71 million, but recorded a loss of Rs 21 million, mainly due to costs linked to development projects. Phase 1 of the Ferney Farm Living project and ecotourism activities in Ferney, however, demonstrate potential for future growth.

• The agro division generated a profit of Rs 78 million. Regarding Alteo, results were negatively impacted by the drop in sugar prices on the export market, despite a good performance in the real estate segment. Operations in Tanzania and Kenya suffered from a reduction in the price of sugar, but the outlook looks more optimistic with an expected improvement in market conditions.