Mauritius-based conglomerate IBL Group has announced robust financial results for the half year ending 31 December 2023, stimulated by the integration of new acquisitions.
Compared to the previous year, its turnover recorded a significant increase of 92%, from Rs 27.1 billion to Rs 52.0 billion. This notable performance was driven mainly by the organic growth of its various sectors of activity and the pursuit of its international expansion strategy, Beyond Borders.
The revenue growth for existing businesses (excluding new acquisitions) was recorded at 14%. Operating profits hit Rs 2.8 billion, representing a 43% increase over the corresponding period in the previous year. The group’s pre-tax profits amounted to Rs 2.77 billion, showing a clear rise compared to the half year till 31 December 2022 when profits stood at Rs 1.82 billion. Existing operations contributed to a 22% rise in operating profit for the six months ending 31 December 2023, while the profit of associated entities increased by almost 50%, excluding Naivas’ figures.
“This remarkable financial performance in most of our areas of activity is a great source of satisfaction. IBL continues to grow organically and implementing our strategy ‘Beyond Borders’ for expansion is bearing fruit,” declares Arnaud Lagesse, Group CEO of IBL.
He adds: “We plan to maintain our growth trajectory in the medium term, while remaining attentive to possible disruptions in the global operating environment. I am comforted by the progress achieved so far and it is up to us to be careful, while being able to adapt to changing operational conditions. We will continue to give great importance to innovation and operational excellence. I would like to thank our teams in the geographies where we operate for their dedication and resilience.”
Cluster-wise performances show overall improvement, complex operating conditions notwithstanding
The overall performance of the IBL Group’s diversified sectors effectively reflects solid growth and effective management, despite the complex economic conditions prevailing from time to time.
Within the Agro and Energy cluster, Alteo’s sugar division has been a major growth driver. A significant increase in sugar production volumes, combined with more favorable prices, propelled its turnover. Transmara, MIWA’s subsidiary in Kenya, also posted excellent results. Furthermore, IBL Energy achieved its strategic objectives, marking significant milestones in Mauritius and East Africa.
In the Building and Engineering cluster, increased operational profits were noted, notably thanks to Manser Saxon for its cost management, selection optimisation projects and strategic price adjustments at UBP. CNOI improved its profitability by diversifying its services, in accordance with its strategic plan.
Organic growth and M&A activities boosted the Commercial and Distribution cluster. Through its Beyond Borders strategy, IBL has further consolidated its presence in the region by acquiring an additional 11% stake in Naivas, the supermarket chain leader in Kenya, and by expanding its portfolio within Run Market in Reunion and Harley’s in East Africa.
In Mauritius, with an increase in their sales volumes, the Winners entities, PhoenixBev and BrandActiv displayed impressive performances. Financially, most subsidiaries of the Financial Services division posted improved results, with a significant reduction in the ratio of claims at Eagle Insurance and sustained growth at AfrAsia, notably thanks to the significant increase in its net interest income. DTOS achieved increased turnover thanks to new acquisitions and the growth of its activities in East Africa. City Brokers has, for its part, expanded and retained its client portfolio in its brokerage activities, leading to a better performance.
The Hospitality and Services division experienced sustained growth, with a solid performance from The Lux Collective, stimulated by the reopening of LUX* Belle Mare. On the Life and Technologies side, the division continues to grow, despite the significant costs incurred for most companies (Life | Nova+, Life | Viva). This cluster has been pulled upwards by the CIDP which has recorded growth and showed a remarkable profit margin for this half-year ending December 31, 2023.
In the Logistics division, Logidis achieved better results due to price revisions and improved operational efficiency. Somatrans recorded a drop in its turnover and profitability due to a reduction in global freight costs. The aviation sub-segment, despite higher turnover, recorded lower profitability due to rising overheads. The shipping segment posted lower results due to lower volume of ancillary services provided.
Finally, the Real Estate sector is experiencing good times with BlueLife which has doubled its turnover and Bloomage which recorded better results. Furthermore, the performance of the Seafood division is rather mixed, largely due to high production costs and a drop in sales at Cervonic and Froid of the Mascarenes. Princes Tuna Mauritius, for its part, maintained robust performance levels, supported by
ongoing cost optimisation initiatives.
