Performance review

We create relevant, efficient, and profitable, end-to-end relationships with our customers.

Decathlon opened its doors in May 2021 at Bagatelle.

The group’s balance sheet remains strong, and we have continued to invest during the crisis

Group review

The year was challenging with the full impact of COVID-19 on economy. Revenue decreased by some 5% and the group incurred a loss after tax of Rs 1.1 billion. Hospitality suffered most and registered more than 70% drop in revenue. The segment however benefited from the Government Wage Assistance Scheme, which helped to mitigate losses after tax. These nevertheless increased from Rs 690 million to Rs 2.5 billion.

Notwithstanding the challenging environment, the other operating segments were resilient except agro-industry which suffered from a significantly reduced cane tonnage and a lower share of profits from associates. [...]

Land & investment

Revenue amounted to Rs 20 million this year and the segment incurred a loss after tax of Rs 341 million, including income of Rs 54 million from the crystallisation of land conversion rights and finance costs of Rs 271 million.

Turbine continued to strengthen its position as the leading start-up incubator in Mauritius, lining up several partnerships for B2B programmes, and successful sponsorships during the year. Moreover, with the launch of its community platform,10 new experts were onboarded and over 600 potential candidates for incubation were registered on its database. [...]

Agro-industry

Cane
Sugar price per tonne increased from Rs 13,149 to Rs 16,010 thanks to the combined effect of rising sugar prices on the European markets and favourable exchange rates. Our performance was nonetheless impacted by the lower sugar tonnage brought about by a shortfall in cane and sugar yields. Cane tonnage went down from 302,290 to 220,879 tonnes due to a sub-optimal crop season. [...]

Non-cane
Open field food crop production has been satisfactory and price increases have contributed to improve performance in this sub-segment. [...]

Real estate

Property development
Sales of residential and commercial units in Moka remained buoyant, owing to consistent interest from local buyers. [...]

Offices
Moka has confirmed its position as a recognised business destination on the island. [...]

Retail
The performance of the retail asset fund has been beyond expectations in the current context of the global health crisis. [...]

Commerce & industry

Despite the challenging environment, the commerce and industry segment of our businesses thrived and exceeded expectations. All companies demonstrated resilience and delivered strong operational and financial results. [...]

Hospitality

We focused on the local market, and on improving the guest experience in our hotels, in anticipation of the reopening of borders. We also invested in business recovery as well as integrated marketing and communication plans for each brand.

Several measures to contain costs and ease cash flow pressure were taken during the year with a view to alleviate the impact of the closure of the Mauritian borders on performance. [...]

Logistics

Velogic has consolidated its position as leader on the Mauritian logistics market. We have maintained our resilience in a volatile environment thanks to our strategy to expand geographically and to further enrich our portfolio of services. [...]

Fintech

Despite the challenging economic climate, the segment showed resilience and delivered strong results. [...]

Land & investment

Revenue amounted to Rs 20 million this year and the segment incurred a loss after tax of Rs 341 million, including income of Rs 54 million from the crystallisation of land conversion rights and finance costs of Rs 271 million.

Turbine continued to strengthen its position as the leading start-up incubator in Mauritius, lining up several partnerships for B2B programmes, and successful sponsorships during the year. Moreover, with the launch of its community platform,10 new experts were onboarded and over 600 potential candidates for incubation were registered on its database. [...]

Agro-industry

Cane
Sugar price per tonne increased from Rs 13,149 to Rs 16,010 thanks to the combined effect of rising sugar prices on the European markets and favourable exchange rates. Our performance was nonetheless impacted by the lower sugar tonnage brought about by a shortfall in cane and sugar yields. Cane tonnage went down from 302,290 to 220,879 tonnes due to a sub-optimal crop season. [...]

Non-cane
Open field food crop production has been satisfactory and price increases have contributed to improve performance in this sub-segment. [...]

Real estate

Property development
Sales of residential and commercial units in Moka remained buoyant, owing to consistent interest from local buyers. [...]

Offices
Moka has confirmed its position as a recognised business destination on the island. [...]

Retail
The performance of the retail asset fund has been beyond expectations in the current context of the global health crisis. [...]

Commerce & industry

Despite the challenging environment, the commerce and industry segment of our businesses thrived and exceeded expectations. All companies demonstrated resilience and delivered strong operational and financial results. [...]

Hospitality

We focused on the local market, and on improving the guest experience in our hotels, in anticipation of the reopening of borders. We also invested in business recovery as well as integrated marketing and communication plans for each brand.

Several measures to contain costs and ease cash flow pressure were taken during the year with a view to alleviate the impact of the closure of the Mauritian borders on performance. [...]

Logistics

Velogic has consolidated its position as leader on the Mauritian logistics market. We have maintained our resilience in a volatile environment thanks to our strategy to expand geographically and to further enrich our portfolio of services. [...]

Fintech

Despite the challenging economic climate, the segment showed resilience and delivered strong results. [...]

Download full segments' review

Risk management

The future is ours to shape, and we aim at making a difference in the marketplace by seizing opportunities and effectively managing our risks hence, achieving our business potential.

Mushtaq Oosman
Chairman, Audit and Risk Management Committee of ENL

The challenges faced by the hospitality segment in terms of financial sustainability remains on top of the risk radar. In such turbulent economic conditions, several of our served markets being highly dependent on imports face the systemic challenges namely supply chain disruption, depreciated Mauritian rupee, hike in costs of imports, freight and inflationary pressures which are likely to persist in 2022. Contrastingly, entities of the group engaged in exports of goods/services sector and property development/management are seizing opportunities brought about by the COVID-19 crisis, i.e. logistics, real estate and fintech segments.[...]

Top 5 group risks

Principal residual risks of ENL   Risk categories Change from LY Capitals impacted
1 Economic conditions and market factors
2 Competition
3 Evolving cyber threats and IT-related risks
4 Increasing costs of operations given heightened compliance requirements
5 Talent management
Top served markets’ risks
6 Inventory and debtors’ management risks
7 Sustainability of cane growing activities
8 Competing alternatives (locally and other destinations)
9 Revenue shortfall risk given external context
10 Inability to sustain sales pattern and pace of development
11 Risks to expansion and growth capabilities

Keys

  • Risk categories:
  • Strategic risk
  • Financial risk
  • Operational risk
  • People & systems risk
  • Risk trends:
  • Risk increased
  • Risk descreased
  • Risk remain unchanged

The changing risk landscape: trends and opportunities

The world in which we operate is moving fast. Disruption is the order of the day; consumer preferences are evolving, and environmental pressures are increasing. Such trends impact businesses, business models and strategy. ENL is not at bay from such factors.

Global trends can have a far more positive impact on our businesses provided we take the necessary actions to benefit from tomorrow’s opportunities. The group keeps abreast of global trends that are likely to have a significant footprint for our businesses. We are preparing our business operations to onboard trends, applicable to their industries, to create a resilient organisation. Our initiatives in line with the trends are shown below.

  • Adapting to changing aspirations of our human capital

    • Investment in talent management & HR strategy.
    • Reinforce # myENL initiatives.
    • Leadership coaching initiatives.
    • Employer value proposition as a recognised employer of choice.
    • Human Capital
      (page 22 to 25)
  • Digital transformation

    • Embarking on the digital transformation journey for operational excellence.
    • Use of technology for automation of processes and through creation of an innovation function, CiLab (connecting business needs with IT solutions) and RPAs.
  • Online shopping footprint

    • Adapting to the evolving consumer preferences is a must for our operations.
    • Initiatives are in terms of omni-channel digital customer engagement which include amplifying our customer insights apabilities to be more relevant to our markets. Objective: precise targeted & predictive marketing.
  • Adapting to changing aspirations of our human capital

    • Green energy projectsn footprint (ISO 50001, LEED building certification).
    • Ecological projects.tainability talks and programmes for Executives and teams.
    • Social initiatives through CSR projects.
    • Social, relationship & natural capital
      (pages 26 to 29)

We believe that global trends will impact the ways in which our businesses operate. As such, we look at trends as being opportunities to be seized and harnessed.

Hector Espitalier-Noël, CEO, ENL Group

Download full risk management report