CIEL Group Reports Strong Financial Performance in Q1 2024

The CIEL Group has announced a robust financial performance for the first quarter of 2024, with revenues reaching Rs 8.8 billion. The results highlight the company’s resilience and growth strategy amidst persisting inflationary pressures and rising labor costs. The revenue figure is bolstered by strong performances in the health and finance sectors.

CIEL Group is steadfast in its ambition to emerge as a leader in its key sectors, pursuing strategic investments to achieve this goal.

Notable initiatives included the renovation of the Shangri-La Le Touessrok and an increase in CIEL’s stake in C-Care International Limited, rising from 53.03% to 63.47%.

Despite the challenges posed by inflation and wage pressures, the company reported an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Rs 1.5 billion, maintaining stability compared to the previous period, even with the temporary closure of the Shangri-La for renovations.

The net profit after tax reached Rs 772 million, supported by strong performances in the health and finance divisions, but slightly impacted by a decline in contributions from the agriculture sector.

The profit attributable to shareholders amounted to Rs 455 million, translating to a dividend of Rs 0.27 per share, down from Rs 0.35 during the same period last year.

The free cash flow stood at Rs 451 million, reflecting the group’s strategic investments in the hospitality and health sectors, along with the working capital needs of its textile division.

As a result of these combined investments, the net debt increased to Rs 13 billion.

However, the debt-to-equity ratio remained stable at 27.7% as of June 30, 2024.

Jérôme De Chasteauneuf, Group Finance Director of CIEL Ltd, commented on these results: “In an uncertain global economic context, rigorous and disciplined management of our investments will be essential for generating solid results and creating added value for our stakeholders.

This approach will enable us to support our long-term growth while enhancing our ability to seize opportunities in a constantly changing environment.”

Analysis of Key Sectors

1. Hospitality Sector: The hospitality division, including Sunlife, demonstrated good performance despite being in the low season.
2. The temporary closure of Shangri-La Le Touessrok for renovations did not prevent the division from recording an EBITDA of Rs 230 million.
3. While net profit remained modest at Rs 12 million, optimistic prospects lie ahead with the hotel’s impending reopening, increasing bookings, and the development of La Pirogue residences.
4. Finance Sector: The finance division continues to perform well, with revenue increasing by 10%, driven by strong performances from BNI Madagascar and Bank One.
5. The latter contributed a profit of Rs 115 million. The net profit after tax reached Rs 472 million, despite narrowing interest margins due to higher financing costs.
6. The EBITDA for this sector was Rs 551 million, reflecting a slight decrease compared to the previous year due to this margin contraction.
7. Textile Sector: The textile division reported revenues of Rs 4.2 billion, supported by optimized cost management and improved operational efficiency.
8. EBITDA rose by 15% to Rs 424 million, while net profit after tax surged by 23% to Rs 184 million, bolstered by increasing demand for operations in India.
9. Health Sector: The health division continued its upward trajectory, achieving revenue of Rs 1.3 billion, a 19% increase. EBITDA also climbed to Rs 273 million, matching a 19% growth, and net profit after tax increased by 26% to Rs 112 million.
10. Key projects in Mauritius, such as the oncology unit at Darné, expanded capacity at Wellkin, and the new clinic in Grand-Baie, have significantly contributed to this positive trend.
11. Moreover, the Ugandan operations showed a revenue growth of 24%, reflecting increased admissions and consultations.
12. Real Estate Sector: The real estate division recorded an 18% increase in revenue, reaching Rs 71 million, although it posted a loss of Rs 21 million due to costs associated with development projects.
13. However, the Phase 1 of the Ferney Farm Living project and ongoing ecotourism activities at Ferney indicate potential for future growth.
14. Agriculture Sector: The agriculture division generated a profit of Rs 78 million.
15. However, results from Alteo were adversely affected by declining sugar prices in the export market, despite a solid performance from the real estate segment.
16. Operations in Tanzania and Kenya struggled due to decreased sugar prices, but the outlook is becoming more optimistic with expected improvements in market conditions.

Source: l’Express