“Healthy 19% EBITDA margin underpins CIEL’s medium to long-term growth strategy”

Guillaume Dalais, CEO of CIEL Group 

• CIEL group share price rises 14%, outperforming SEMDEX

CIEL Group reported a 19% EBITDA margin for the year, a level described as “very healthy” by management. The Group underlined that its recent investments, though weighing on short-term returns, are expected to generate sustainable value over the medium to long term.

CIEL Group reported resilient results for the year ended 30 June 2025, underscoring its diversified growth model across East Africa, Asia, and Mauritius, while laying the groundwork for future expansion in healthcare, hospitality, property, and precision manufacturing.

Chief Executive Officer Guillaume Dalais opened the presentation, last Tuesday, at the Caudan Arts Centre, by highlighting the Group’s performance and long-term vision. “Our ambition is really to deliver best-in-market growth from our investment portfolio through sustainable value creation. This year, we continued to invest in talent, sustainability, and technology to build a foundation for the next decade of growth,” he said.

Financial Performance

Group revenue rose by 8% to MUR 38 billion, while profit after tax stood at MUR 3.8 billion. Profit attributable to shareholders came in at MUR 2.2 billion, compared to MUR 2.8 billion the previous year. EBITDA reached MUR 7.2 billion, with a margin of 19%, reflecting ongoing investment and market headwinds.

Despite these pressures, Guillaume Dalais noted that “a 19% EBITDA margin remains very healthy, and we are confident that the investments we have made will generate medium- to long-term value creation.” The Group’s share price increased to MUR 13.49, representing a 14% rise during the year, outperforming both the SEMDEX and the MSCI Frontier Markets indices.

Cluster Highlights

Healthcare

Healthcare delivered robust growth, with revenue rising 18% to MUR 5.8 billion, and EBITDA expanding in both Mauritius and Uganda. CIEL reinforced its leadership position by raising its stake in C-Care (CCIL) to 74.97%. EBITDA rose to MUR 1.2 bn, supported by the higher revenue and disciplined cost management that offset wage and inflationary pressures. Profit after tax improved by 38% to MUR 484M, underscoring strong operational momentum despite increased depreciation and finance costs resulting from the recent investment programme. The period to date also saw CIEL Ltd consolidate its effective stake in C-Care International Ltd (CCIL) from 53.03% to 74.97%, which will translate into higher attributable profits going forward. “Our healthcare capex programme of MUR 2.3 billion over the past three years has been well materialised and is driving results,” the management stressed. The Group is also pursuing further expansion in East Africa, with new hospitals and clinics planned in Uganda and Kenya.

Hotels & Resorts

The Hotels & Resorts cluster delivered a resilient performance during a transition year marked by the successful listing of Sun Limited (“Sun”) and Riveo Limited (“Riveo”) as separate entities on the Stock Exchange of Mauritius, coupled with major renovation works across Riveo’s portfolio. Revenue for the cluster reached MUR 8.9 billion, representing a 3% increase compared to the prior year. Sun posted steady growth, with a 7.9% rise in RevPAR and a strong EBITDA margin of 31.9%, despite cost pressures from wage adjustments and regulatory bonuses. Riveo’s performance, however, was temporarily affected by the closure of both the Four Seasons Resort Mauritius and the Shangri-La Le Touessrok during part of the financial year. Overall, the cluster achieved an EBITDA of MUR 2.3 billion and a profit after tax of MUR 1.1 billion. The relaunch of Shangri-La and the upcoming reopening of Four Seasons are expected to significantly boost FY2026 results. “From a ratio perspective, Sun Life is a yielding asset delivering best-in-market performance, while Riveo’s repositioning is showing strong momentum. Next year we will see the full benefits of Shangri-La and Four Seasons,” the management says.

Textile

For the year, revenue in the Textile cluster rose by 6% to reach MUR 16.7 billion, supported by the strong performance of shirt operations in India. EBITDA increased by 2% to MUR 1.7 billion, reflecting resilient operations despite a challenging environment marked by uncertainty, tariffs, higher freight costs, and rising input expenses. Profit after tax amounted to MUR 776 million. While short-term volatility remains due to evolving U.S. tariff policies and the pending renewal of AGOA, the cluster’s diversified presence and India’s growing role as a global sourcing hub continue to strengthen CIEL Textile’s medium- to long-term growth strategy. The textile cluster faced geopolitical headwinds but continued to expand its strong base in India, where CIEL has become a global leader in woven shirts. “Between Mauritius, Madagascar, and India, we are now among the top five leaders in woven shirts globally for mid-to-up markets,” the management team reported. Investment in digitalisation, particularly in Bangalore, is expected to further strengthen competitiveness.

“Between Mauritius, Madagascar, and India, we are now among the top five leaders in woven shirts globally for mid-to-up markets.”

Finance

The Finance cluster recorded revenue of MUR 6.1 billion for the year, an 8% increase compared to the prior period, supported by moderate loan book growth in Madagascar despite a challenging macroeconomic context. EBITDA stood at MUR 1.9 billion, with profit after tax at MUR 1.4 billion, reflecting margin compression and higher funding costs. Bank One contributed MUR 320 million to the cluster’s profitability. While the final quarter was softer than anticipated, both banks continued to advance key initiatives, placing the cluster on a strong strategic footing to support recovery and long-term performance. Bank One also underwent leadership changes and is refreshing its operating model to align with future growth.

Property

The Property cluster posted a strong performance, with revenue rising by 44% to MUR 336 million, driven by higher rental income at Evolis, the Group’s mixed-use property fund, in line with its strategy to grow recurring portfolio income. EBITDA stood at MUR 264 million, supported by a revaluation gain of MUR 194 million from investment properties at Ferney and Evolis, further boosted by a one-off strategic land sale. Profit after tax for the year amounted to MUR 154 million. The property portfolio performed strongly, with Evolis achieving nearly 98% occupancy across 80,000 sqm of rental space. The highly successful La Pirogue Residences project unlocked cash flow and is running at above 90% occupancy. “With Ferney’s ‘farm living’ project nearly sold out, and strategic acquisitions in the pipeline, we are well positioned to double our rental portfolio in the coming years,” management confirmed.

Agro

The Agro cluster reported a profit of MUR 182 million for the financial year, lower than in FY24, primarily due to a decline in sugar prices affecting both Alteo and Miwa Sugar. Alteo’s weaker performance in the Agro segment was partly offset by strong earnings from agricultural land sales within the Property cluster. Miwa Sugar also faced a difficult year, with reduced profitability across its Tanzanian and Kenyan operations as a result of downward price pressures. Management expects this challenging environment to be temporary, with profitability projected to return to more sustainable levels in the near term. Management highlighted progress in diversifying into property, renewable energy, and distillery projects.

Strategic Growth Drivers

Looking beyond its core clusters, CIEL has embarked on a new joint venture in medical device manufacturing in India, focused on orthopaedic implants. The Group holds a 60% stake in the JV alongside a French partner. “We are very excited about this venture, which leverages our 20 years of manufacturing experience in India. This is a high-growth, high-margin market where we see tremendous opportunity.”

ESG and Sustainability

Sustainability remains central to CIEL’s strategy. The Group issued MUR 1.4 billion in Africa’s first sustainable-linked bond and is targeting 80% renewable energy by 2030. A new climate risk assessment framework has also been launched. “We are championing sustainable practices across all clusters to create long-term value,” the CEO emphasised.

Outlook

Looking ahead, the Group expects stronger contributions from hospitality, continued expansion in East Africa healthcare, and steady growth in property and textile operations. “We are focused on strategy execution, operational performance, and disciplined capital management. At the same time, we are nurturing promising growth drivers such as medical device manufacturing in India,” Guillaume Dalais concluded.

In summary, while FY2025 saw margin pressures, CIEL’s diversified model, strong regional positions, and commitment to sustainable innovation underline its resilience and long-term growth trajectory.