13 November 2017
Alteo Group reports a drop in results on the back of a lower sugar cane availability in Kenya and a lower sucrose and price in Mauritius while Tanzanian sugar operations achieve a strong performance.
Alteo Group published its financial results for the quarter ended 30 September 2017 showing a decrease of 21% in its Turnover and 48% in its Profit after Tax (PAT) driven by a lower sugar cane availability in Kenya and a delay in the harvest in Mauritius due to adverse climatic conditions compounded by a lower sucrose and price level.Alteo Group published its financial results for the quarter ended 30 September 2017 showing a decrease of 21% in its Turnover and 48% in its Profit after Tax (PAT) driven by a lower sugar cane availability in Kenya and a delay in the harvest in Mauritius due to adverse climatic conditions compounded by a lower sucrose and price level. However, Tanzanian operations show strong performance due to higher sales volume and average price.
The energy cluster posted a lower turnover and profit after tax mainly due to a planned maintenance stop at Consolidated Energy Co. Ltd which resulted into a lesser offtake and higher maintenance costs compared to the previous period.
The quarter was characterised by a low property turnover recognition given the early stage of completion of works relating to the northern parcels of Anahita. However the cluster results were influence by the better performance achieved by Anahita Golf & Spa Resort, driven by higher occupancy.
Outlook
The sugar cluster performance is expected to continue to be affected by the conditions mentioned above concerning Kenya and Mauritius while the Tanzanian operations should benefit from a good crop despite not achieving last year’s record production.
The energy cluster should benefit from an increased contribution from Alteo Energy Ltd, following the contractual tariff indexation as from January 2018.
The property cluster should continue to benefit from the improved performance of Anahita Golf & Spa Resort following its refurbishment while the recognition of the first sales of the Anahita northern parcels is expected for the last quarter of the financial year.
