The CIEL Group’s revenue witnessed an increase by 10 percent to the tune of Rs 20.7 billion, on the back of a strong performance at Sunlife hotels in Mauritius, improved banking income at BNI Madagascar, and continued growth at C-Care, both on the island and in Uganda.
Among key highlights are its EBITDA rising to Rs 4.1 bn, stressing the group’s sustained operating performance and a continued focus on efficiency. It was remarked that the performance was achieved notwithstanding a weaker contribution from the Textile cluster, as regional operations were impacted by uncertainty surrounding the renewal of AGOA.
The Group EBITDA margin strengthened to 20 percent. On the other hand, profit after tax stood at Rs 2.2 bn, reflecting a strengthened broad-based contribution across most clusters, while profits attributed to owners remain broadly on par with the corresponding period last year at Rs 1.11 bn, translating into earnings per share of Rs 0.65.
While the net interest-bearing debt stood at Rs 17.2 billion, reflecting funding requirements for hotel renovations within the Riveo portfolio, CIEL’s consolidation of its investment in the Healthcare cluster, and higher working capital requirements for the six months under review. The Group’s gearing ratio stood at 32 percent, with Net Debt to EBITDA at 2.2x.
Group Chief Executive of CIEL Limited, Guillaume Dalais, commented: “The diversification of our portfolio continues to strengthen the Group’s resilience. Our Healthcare and Financial Services clusters in East Africa remain on a strong growth trajectory. Recent international trade developments around AGOA, together with growing trade engagement between India, the US, and the EU, are also providing a more favourable outlook for our textile operations and reinforce our strategic ambition to strengthen our manufacturing platform in India, positioning us well to deliver sustainable growth.”
Among the cluster reviews, hotels & resorts delivered a strong performance on the back of a persistent momentum across the Sunlife portfolio and the ramp-up of Shangri-La Le Touessrok at Riveo, following its reopening. Revenue rose by 22 percent to reach Rs 5.4 billion, supported by a 10 percent increase in RevPAR at Sunlife and sustained demand across key markets.
While revenue for the textile cluster was stable at Rs 8.5 bn, reflecting pressure in regional operations linked to uncertainty around AGOA renewal, partly mitigated by continued positive momentum in Asia.
On the other hand, profit after tax saw a decline to Rs 235 million, moderated by the stronger contribution from the Indian shirt operations in the second quarter. The cluster remains focused on operational optimisation and the continued strengthening of its manufacturing platform in India.
Under the finance cluster, reported year-on-year revenue growth of Rs 3.4 bn, attributed to a higher asset base at BNI Madagascar and improved interest rate conditions. The profit after tax was at Rs 956 million, despite a lower share of profit from Bank One of Rs 132 million.
While for the property segment, revenue shot by 13 percent to reach Rs 185 million, supported by the recurring rental income from the Evolis portfolio and continued progress across the development pipeline. It mentions a rise in the year-on-year EBITDA at Rs 45 million, with profit after tax reaching break-even for the corresponding six-month period.
