Harel Mallac Limited Increases PAT to Rs 185 Million for FY 2023, Driven by 4.8% EBITDA Growth and Acquisitions

Published On: August 14, 2024Company: Harel Mallac Limited (HML.mu)
What strategic moves did Harel Mallac undertake to navigate the challenges of 2023 and maintain profitability?
Harel Mallac implemented the "Unlocking Potentials" strategy to navigate the market challenges and maintain profitability. This included investments to improve operational capabilities, acquisitions for growth, divesting investments into a new subsidiary, and a renewed focus on environmental, social, and governance factors. The group also emphasized the development and retention of its workforce to enhance output and efficiency.

Summary of the Annual Report

  • Harel Mallac Group demonstrated resilience in the face of challenges such as escalating import and finance costs, market competition, and staff turnover.
  • The Group’s profit increased to Rs 185 million in 2023 from Rs 159 million in 2022.
  • Harel Mallac emphasized empowering employees, which has resulted in attracting new talent and retaining seasoned professionals.
  • The Group has created a strategy “Unlocking Potentials” focused on social responsibility, environmental stewardship, and financial excellence, which is to be implemented in the medium term.
  • Harel Mallac demonstrated its commitment to shareholders by enhancing shareholder value through strategic initiatives. It also divested from its investments into a newly listed subsidiary, to streamline operations and maximise returns for shareholders.
  • The group has undertaken an “Unlocking Potentials” strategy to navigate the evolving competitive landscape and achieve sustainable growth.
  • Harel Mallac is beginning a new ESG-centric journey where a more rigorous methodology will be adopted to ensure that resources are allocated effectively to address the most material issues.
  • The Harel Mallac Board of Directors has been critical in steering the company towards sustainable growth by upholding good governance practices.
  • The Group aims to increase profitability by adopting an asset-light approach and plans to expand into new markets and geographies, alongside empowering their employees.

Revenue Performance and Strategic Initiatives

  • The Group’s revenue increased by 3.3%, reaching Rs 4.3 billion in 2023, mainly due to performance improvements in the Equipment and Systems segment and the Chemicals segment.
  • EBITDA grew by 4.8% to Rs 392 million, while finance costs increased by 45% to Rs 113 million.
  • Significant investments were made in strategic acquisitions and capital expenditures, which were expected to enhance operational capabilities and provide future growth opportunities.

Workforce and ESG Efforts

  • The Group is focusing on talent development and retention, transformation into an attractive workplace, and enhancing its Employer Brand.
  • Harel Mallac is placing increased emphasis on Environmental, Social, and Governance (ESG) values. The Group conducted its first carbon footprint assessment in 2023, which has informed an action plan aimed at reducing emissions.

Future Growth Strategy

  • The “Unlocking Potentials” strategy will guide the Group’s future direction, focusing on ESG values, investment in people and talent, operational efficiency, financial re-engineering, marketing excellence, internationalisation, and innovation.
  • Despite the local and global challenges to be faced in 2024, the Group is confident in its strategic direction and ability to pursue its ambitions.

Useful links

About Harel Mallac Limited (HML.mu)

Harel Mallac and Co. Limited is involved in the manufacturing and trading, business service as well as asset management businesses. The company operates through investment, corporate and property business services and manufacturing and trading segments.  Harel Mallac and Co. Limited also engages in the blending, trading, and selling of chemicals, fertilizers, and general goods, the provision of agro industrial, engineering, refrigeration, and electrical products, as well as air conditioning and fire protection, and waterproofing activities. Harel Mallac and Co. Limited has operations in Mauritius, Burundi, Madagascar, Rwanda, Tanzania, and Zambia. The company is based in Port Louis, Mauritius. Harel Mallac and Co. Limited is a subsidiary of Société de Lerca. Harel Mallac and Co. Limited is listed on the Stock Exchange of Mauritius

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