Harel Mallac Group reported a net profit of Rs 185 million for the fiscal year ending on December 31st, marking a 16.4% increase from the Rs 159 million profit in 2022.
The Group’s revenue also saw a nominal increase from Rs 4.2 billion to Rs 4.3 billion in 2023.
This growth was mainly attributed to the improved performance of the Equipment and Systems, and Technology segments.
The Group’s share of profit in associated companies and joint ventures amounted to Rs 68 million, up from Rs 59 million in 2022.
However, financial costs increased from Rs 78 million to Rs 113 million due to rising interest rates.
The after-tax profit from discontinued operations was Rs 22 million, primarily from the profit share of associated companies such as Attitude Hospitality Management Ltd, Watersports Village Limited, and Zilwa Resort Ltd.
Harel Mallac’s total assets decreased to Rs 4.5 billion, and equity contracted to Rs 1.5 billion, due to a dividend in specie transaction approved by shareholders in April 2023.
The Group generated a positive cash flow of Rs 85 million from operational activities, a significant improvement from the Cash Outflow of Rs 61 million in 2022.
In terms of sector performance, the Chemicals segment’s revenue decreased to Rs 2 billion, mainly due to lower sales volumes in the Agro sector and decreased selling prices resulting from lower raw material costs.
This was offset by the strong performance of Archemics, leading to an overall after-tax profit of Rs 50 million for the Chemicals segment.
The Equipment and Systems segment reported an increased revenue of Rs 1.6 billion (from Rs 1.3 billion in 2022) and a net profit of Rs 59 million (compared to losses of Rs 1 million in 2022).
Novengi successfully delivered key projects, while investments in La Réunion significantly contributed to profitability.
Linxia showed signs of recovery, and EO Solutions continued to progress robustly.
The Technology segment’s revenue decreased from Rs 770 million to Rs 742 million, mainly due to project delays and currency devaluation in foreign markets where Harel Mallac operates.
The segment reported a profit of Rs 4 million for 2023 (compared to losses of Rs 2 million in 2022).
The Investments and Corporate sector improved its revenue to Rs 229 million, with profits of Rs 75 million.
Moving forward, the Group will focus on operational efficiency and strategic growth, navigating market challenges and seizing opportunities to sustain growth and profitability.
Source: Le Mauricien
