Terra Mauricia Ltd Reports Reduced Profits in Q3 2023 due to Higher Finance Costs and Losses from Côte d’Ivoire Associate

Published On: November 27, 2023Company: Terra Mauricia Ltd (TERRA.mu)
What was the primary reason for the reduction in profitability as indicated in Terra Mauricia Ltd’s Q32023 interim report?
The main reason for reduction in the company's profits in Q3 2023 was the heavy losses incurred by its associate in Côte d’Ivoire, coupled with higher finance costs.


  • The Group’s turnover for Q3 2023 was MUR 5.5 Bn, a 4.5% increment compared to the previous year.
  • The company made profits of MUR 353.8 M, against MUR 590.2 M of the corresponding period in 2022 due to losses incurred by its associate in Côte d’Ivoire and higher finance costs.
  • Profitability from local sugar operations dropped to MUR 157.3 M due to decreased tonnage of canes manipulated and sugar accruing from them. This loss was partially offset by higher-than-expected sugar prices.
  • Due to poor crops, increased production costs and delays in getting the mills operational, the associate in Côte d’Ivoire recorded large losses, with the company’s share of these losses standing at MUR 206.5 M.
  • The power plant operations resumed on 29th April 2023, with turnover declining by 25% to MUR 762.2 M as a result of the low off-take level. Cluster losses were slightly higher as a result, at MUR 52.7 M.
  • Brands cluster turnover grew by 13.3% to reach MUR 1.9 Bn, but higher finance costs and dismal financial results from Seychelles operations resulted in overall profits of MUR 92.5 M, down from MUR 106.4 M in 2022.
  • Profits from the Property and Construction cluster marginally increased to MUR 210.6 M, resulting primarily from increased revenue from property sales, rentals, consultancy fees, and a performing leisure division.
  • The group made a one-off profit on the disposal of its investment in Aquasantec International Limited which, along with the fair value gain from the investment in United Investments Ltd, helped offset the increase in finance costs, leading to an overall profitability of MUR 152.6 M for this cluster.

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About Terra Mauricia Ltd (TERRA.mu)

Terra Mauricia Limited is an investment holdings conglomerate that is engaged in the production and distribution of alcoholic products, such as wine and spirits, and cane spirits, as well as sale of various consumable goods, production and sale of electricity from coal and bagasse. The company also manufactures and sells hollow concrete blocks, aggregates, rock sand products, rents properties and engages in the property development and promotion activities that include, site identification and surveying, project conception, market survey, administration, project management, as well as marketing and sale. Terra Mauricia Limited operates within the segments of sugar, commercial and alcohol production, and energy. The company is based in Mauritius. Terra Mauricia Limited is listed on the Stock Exchange of Mauritius.

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