NMH Ltd Reports Record Revenue, Rs 15.4 Billion for Fiscal Yr June 30, 2024

New Mauritius Hotels Ltd (NMH) has announced its financial results for the fiscal year ending June 30, 2024, achieving a record revenue of Rs 15.4 billion, a notable increase from Rs 14.1 billion in the previous year. The company maintained its EBITDA at Rs 4.8 billion, and its net profit after tax reached Rs 2.1 billion.

This achievement is particularly commendable given that a significant portion of the group’s rooms were unavailable for sale throughout the year due to renovation work, alongside substantial increases in operational costs.

Stéphane Poupinel de Valencé, the Chief Executive Officer of NMH, emphasized the milestone, stating, “NMH has crossed the Rs 15 billion revenue threshold for the first time while maintaining a respectable profit margin despite ongoing rising operational costs.

This success is the result of the dedication and expertise of our artisans, whom I sincerely thank.

In recognition of this performance, a bonus will be awarded to all our teams in September 2024 alongside their monthly salaries.

We approach the 2025 financial year with confidence, driven by our new ‘Be’ communication campaign, our People-First philosophy, and our strong commitment to sustainable development, which will continue to support our growth in 2025.”

Looking ahead, NMH is optimistic about positive results for the first quarter of the 2025 financial year, covering the period from July to September 2024, as fewer rooms will be closed for renovations compared to the previous year.

By mid-October, all rooms will be available for sale again. With booking levels comparable to the previous year, the group expects to achieve robust performance in the first six months of the new financial year.

On the project front, the construction of the 18-hole golf course at Harmonie Golf Course in Les-Salines, Rivière-Noire, is progressing well, marking a significant step towards the development of the future Harmonie Beachcomber Golf Resort.

Additionally, NMH is strengthening its initiatives in innovation and digitalization, implementing various projects aimed at transforming its operations through enhanced customer interactions and improving employee experiences.

The group is also investing in modernizing its infrastructure, paving the way for efficiency gains and new growth opportunities.

Furthermore, NMH has declared a dividend of Rs 0.33 per preferred share for the half-year ending June 30, 2024, bringing the total preferred dividend to Rs 0.66 per share.

For ordinary shares, NMH has approved an interim dividend of Rs 0.20 per share to be distributed in January 2024, followed by a final dividend of Rs 0.30 per share in May 2024.

Reviewing the overall situation, the Board of NMH noted the resilience of the Mauritian tourism sector, which recorded 1.3 million tourist arrivals in 2024, reflecting an 8.8% increase compared to the previous year.

Revenue from hotel operations in Mauritius reached a record Rs 11.1 billion, marking an 11% growth despite an average occupancy rate of 73%, down from 74% in 2023.

This slight decline in occupancy is attributed to renovation work across several of the group’s establishments, notably at Paradis Beachcomber Golf Resort & Spa, Shandrani Beachcomber Resort & Spa, and Canonnier Beachcomber Golf Resort & Spa.

Renovation work also affected Victoria Beachcomber Resort & Spa, Dinarobin Beachcomber Golf Resort & Spa, and Royal Palm Beachcomber Luxury, which partially closed in mid-May 2024.

Regarding costs, inflationary pressures continued throughout the year, with personnel costs rising by 15%.

This increase was primarily driven by a local labor shortage and adjustments to employment conditions, such as minimum wage, overtime, and paid leave.

Additionally, operational costs saw a 15% increase due to higher expenses related to maintenance, security, and transportation, following new labor laws and regulations.

Despite these temporary closures and significant cost increases, NMH’s results remained solid, bolstered by favorable exchange rates and a rise in direct bookings that yielded higher returns.

The EBITDA for Mauritian hotel operations stood at Rs 3.7 billion, up from Rs 3.5 billion the previous year, allowing the group to award a performance bonus equivalent to two months’ salary to all artisans working in Beachcomber hotels.

In Morocco, NMH’s operations experienced impacts from the earthquake in Marrakech during the first quarter, leading to the temporary closure of the hotel there.

Revenue was reported at Rs 1.1 billion, down from Rs 1.2 billion in 2023, while EBITDA reached Rs 231 million, which includes Rs 121.5 million in insurance compensation for business interruption and property damage.

The Moroccan tourism industry also faced challenges due to the repercussions of the ongoing conflict in the Middle East.

In February 2024, the annual rent for the hotel property on Île Sainte Anne, leased to Club Med, was increased by 2% in accordance with the lease agreement.

However, additional work on staff accommodations resulted in a Fair Value Loss of Rs 69 million, compared to a Fair Value Gain of Rs 109 million recorded the previous year.

This situation impacted EBITDA, which amounted to Rs 339 million, down from Rs 510 million in 2023.

Regarding the group’s tour operator activities, NMH’s tour operators in South Africa, the United Kingdom, France, and Mauritius continued to contribute positively to financial results, though revenue growth remained moderate due to a reduced number of available overnight stays at Beachcomber.

This segment reported revenue of Rs 2.2 billion, an increase from Rs 2.1 billion in 2023, while EBITDA reached Rs 452 million, slightly down from Rs 515 million the previous year.

The Inflight & Inland Catering segment experienced a rebound, supported by an increase in passenger traffic, revisions to contractual rates, and sustained demand in the commercial, educational, and medical sectors.

Revenue from this segment reached Rs 530 million, compared to Rs 374 million in 2023, with EBITDA returning to positive figures at Rs 39 million, versus a negative EBITDA of Rs 22 million in the previous year.

NMH reported a significant reduction in its net debt by Rs 1.6 billion over the year, improving the Group’s Gearing Ratio by 10%, in line with its objectives.

The ratio of Net Debt to EBITDA stands at a comfortable 3.4 times, while the Asset Cover Ratio is recorded at 2.65 times.

Financial expenses amounted to Rs 1.2 billion, up from Rs 1.1 billion in 2023, despite rising interest rates throughout the year.

Additionally, the A- rating assigned by Care Rating in the third quarter has contributed to reducing financial costs, with the full impact expected to be felt in the period ending June 30, 2025.

Source: Le Mauricien