Net loss for MCFI, despite rise in revenue

The revenue of the Mauritius Chemical and Fertilizer Industry Ltd for the quarter ended 31 March 2021 rose by Rs 76 million compared to the corresponding prior year period.

The performance is attributed to better sales achieved in the fertilisers business and the consolidation of Suchem, which was acquired in August 2020. However, the second lockdown in Mauritius as from 10 March 2021 reportedly had a negative impact on the sales of the chemical business of the Group. 

Despite this revenue increase, disruptions in global supply chain as well as mounting import and logistics costs resulted in a lower margin achieved in Q1: 2021. 

The share of loss from associates stood at Rs 1.5 million, “as this was the remaining investment value in the accounts of the Group.”

The reduction in net finance costs reflects the impact of a forex gain of Rs 8.3 million arising mainly from the appreciation of the US Dollar versus Mauritian Rupee in a subsidiary having the US Dollar as functional currency. 

Bottomline:  the group posted a net loss of Rs 7.6 million for the period ended 31 March 2021 compared to a net loss of Rs 26.7 million for the previous period. 

MCFI is engaged in agricultural, industrial and water solutions in Mauritius, Zambia and Tanzania.