Alteo Limited’s Restructuring Leads to Rs 4.1bn Gain as Agro-business Revenue Soars by 14%
- What were the key factors influencing the financial performance of Alteo Limited in 2023?
- Key factors affecting the performance of Alteo limited in 2023 included an increase in sugar prices which boosted the Agro-business cluster's revenue, inflationary pressures and lower bagasse availability which negatively impacted the EBITDA, and the completion of the company's restructuring that resulted in substantial gains from the disposal of Sucriere des Mascareignes group. In addition, the cyclical nature of property project delivery led to reduced revenue for the Property cluster, and high coal prices diminished profits for the Energy cluster.
Group Review Summary
- Alteo completed restructuring in Q2, separating into two listed groups.
- Group revenue remained steady at Rs 4.4bn, primarily due to the agro-business cluster and increased sugar prices.
- EBITDA fell by 13% to Rs 749m because of inflationary pressure on operational costs and reduced bagasse availability, but profitability increased by 29% to reach Rs 720m due to valuation increases and lower finance costs.
- The group restructuring resulted in a gain of Rs 4.1bn, primarily due to the disposal of the Sucriere des Mascareignes group.
Property Cluster Summary
- Revenue for the Property cluster fell due to the nature of the residential project delivery cycles.
- Revenue was down Rs 364m compared to the previous year which saw income from Mont Piton 2 and Balnea 2 projects.
- Improved tourism in hotel and golf operations resulted in increased room nights and golf rounds at Anahita Golf and Spa Resort.
Agro-Business Cluster Summary
- Revenue increased to Rs 2.2bn (14% higher than last year), boosted by a 52% increase in sugar prices.
- High production costs and reduced cane harvests affected profitability, though appreciation was seen in the fair value of consumable biological assets.
Energy Cluster Summary
- Due to reduced bagasse availability for energy production, a switch to coal was necessary.
- High coal prices and reduced efficiency in the power plant led to a decrease in profits, reaching a near-break-even performance.
Outlook and Restructuring Update
- Demand for the group’s property offerings remains strong with the sale of Anahita’s final phases planned for the next 12 months and Anahita Beau Champ launching its first phase of residential offerings.
- Agro-Business and Energy clusters are expected to see margin improvements in the short term, positively influenced by the outlook for sugar prices.
- The company completed its restructuring initiative in Q2, with all East African operations now under a separate entity, Miwa Sugar Limited.
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About Alteo Limited (ALT.mu)
Alteo Limited is a holding company, which deals in cane farming, sugar milling, sugar refining, energy production, real estate and hospitality in Mauritius and regionally. The company was established in September 2017 and is headquartered in San Pierre, Mauritius. Alteo Limited is listed on the Stock Exchange of Mauritius.
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