Terra Mauricia’s Profits Impacted by Losses in Côte d’Ivoire and High Finance Costs

Terra Mauricia Ltd, an investment holdings conglomerate, has recorded a turnover of Rs5.5 billion in the third quarter of 2023, reflecting a 4.5% rise compared to the previous year.

However, despite the overall increase in turnover, profits declined to Rs353.8 million, down from Rs590.2 million in the corresponding period of 2022.

The decrease in profitability has been attributed to losses incurred by their associate in Côte d’Ivoire and higher finance costs.

The company reportedly faced challenges in its local sugar operations, with profitability dropping to Rs157.3 million.

This decline was due to a decrease in the tonnage of canes handled and the resulting sugar production.

However, the impact of this loss was partially offset by higher-than-expected sugar prices.

The associate in Côte d’Ivoire experienced significant losses due to poor crops, increased production costs, and delays in mill operations.

Terra Mauricia’s share of these losses amounted to Rs206.5 million.

On a positive note, the brands cluster saw a 13.3% growth in turnover, reaching MUR 1.9 billion.

However, higher finance costs and disappointing financial results from operations in Seychelles led to an overall profit of Rs92.5 million, down from Rs106.4 million in 2022.

Source: AFRICAN Financials