ENL Limited (Mauritius) – Unaudited Abridged financial results for Q3 ended 31 March 2022

By Published On: June 17th, 2022Categories: Corporate announcement, Earnings

ENL Limited (ENL.mu) Q32022 Interim Report

COMMENTS ON THE FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 31 MARCH 2022

The results for the period showed a marked improvement over the same period last year with turnover increasing by 43% and the Group reporting Rs 608m of profit after tax compared with a loss of Rs 1.3bn last year. All the operating segments posted improved results and most notably Hospitality.

The country re-opened its borders on 1 October 2021, after the first quarter of the year, and occupancy levels at the various hotels of the Group are better than anticipated. The good occupancies coupled with higher guest night spending resulted in the segment posting a profit after tax of Rs 14m as against a loss of Rs 1.6bn last year.

Agro-Industry recorded a good performance for the period, driven by higher sugar prices, remuneration of bagasse and improved results from associated company. Profit after tax amounted to Rs 67m compared with a loss of Rs 62m for the same period last year. Commerce and industry posted a significant increase in profit after tax. Axess maintained its share of the new vehicles market but procurement issues resulting from shortages of semiconductors affected sales. Ensport (Decathlon) contributed for the first time this year, the segment being resilient with all companies posting profits for the period.

Logistics realised a profit after tax of Rs 176m for the period, a 31% increase over last year. This performance was driven mainly by the growth in freight forwarding and shipping businesses due to increased airfreight and courier volumes. Fintech performed well during the period with an increase of 32% in profit after tax.

This performance resulted mainly from the higher share of profits from associated companies.

Real estate, which comprises property development, shopping mall operations and rental of office spaces, continued to perform well with revenue and profit after tax up by around 30%. Demand for serviced plots of land and apartments in Moka Smart City remains strong and we will shortly launch officially the development of a Smart City at Gros Bois in the south. Our shopping malls posted encouraging results with trading densities increasing by 14% and a healthy rent to turnover ratio. Our offices are nearly fully tenanted and we will be opening shortly Les Fascines, our newest office building, in Vivea to complement our offer. We have also launched a new mixed-used development at Telfair with the construction of four buildings covering some 20,000 sqm.

OUTLOOK

The war in Ukraine is a cause for concern with negative repercussions on the prices of commodities and further disruption of supply chains. The situation is fuelling inflation worldwide and affecting the local economy. We are evaluating the situation and initiating measures to mitigate the impact on the Group.

The various operational segments continue to perform well for the last quarter and we expect the Group to post solid profits for the full year.

By order of the Board

ENL Secretarial Services Limited
Company Secretary 16 May 2022