Terra Mauricia’s turnover for the first six months of FY22 increased by Rs883.4million to reach Rs2.8billion. However, the group’s net profits dropped to Rs161.3million, compared to Rs238.5million for the same corresponding period in FY21.
The drop in profitability was attributed to Terra’s operations in the ‘Power’ sector and soaring prices of coal following the outbreak of war in Ukraine.
Terragen declared a Force Majeure Event under the Power Purchase Agreement (PPA) with the Central Electricity Board (CEB) but resumed its operations at the beginning of the crop season on 27 June 2022, using bagasse to generate electricity.
CEB and Terragen are currently engaged in a mediation process to seek a workable solution for both parties for the remaining period under the present PPA until June 2025.
The group’s sugar operations showed a positive turnaround of Rs38.7million, attributed to an increase in overall estimated sugar revenues, resulting mainly from better than expected sugar prices.
The property cluster improved its profitability compared to the corresponding period to Rs20.4million, a positive turnaround of Rs30.9million, due to higher revenue from land sales, a positive contribution from the Mahogany shopping promenade which was launched at the end of June 2021.
Share of associates’ results dropped by Rs10.5million to Rs79.5million, due to the reduced profitability on investments in the financial sector. The cluster posted a lower net profit of Rs76.2million, compared to Rs86.4million for the corresponding period of FY22.
Source: Stock Exchange of Mauritius
