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First semester 2023-24

Medine Group registers positive performance across all sectors

For the first semester of 2023/2024, the Medine Group has observed a 73% increase in revenue, reaching Rs 2.02 billion. The earnings before interest, taxes, depreciation, and amortization (EBITDA) have risen by 93% to reach Rs 496 million. This performance reflects the group’s efforts to enhance innovation and operational excellence to fuel productivity and growth.

Our figures demonstrate strong progress, reflecting our operational restructuring that began in 2020, as well as disciplined management of our operations. We continue our strategy to balance our growth and investment goals with prudent debt management and concerted efforts to create a performance culture throughout the group,” Dhiren Ponnusamy, Chief Executive Officer of Medine Group, states.

Real estate has shown positive results, with revenue quintupling to Rs 881 million and EBITDA tripling to Rs 187 million, notably driven by the residential projects Serenis and City Garden Oceanside. These results are also supported by a high and consistent occupancy rate in the group’s rental portfolio, reflecting the strength and attractiveness of Medine’s real estate offerings.

The agricultural sector has experienced solid growth, with revenues amounting to Rs 722 million compared to Rs 662 million the previous year, and an EBITDA of Rs 230 million, representing a 49% improvement. This improvement is attributed to adaptation to climate challenges, and innovative initiatives in the fields of food crops and livestock.

In the group’s Leisure segment, the increase in tourist attendance at Casela Park and a 34% revenue growth, with Rs 224 million for Casela and Rs 146 million for Sports & Hospitality, indicate a positive trend.

The Education sector is expanding through new strategic partnerships with leading international higher education institutions, including The American Business School of Paris, SUPINFO, Vellore Institute of Technology, and Swansea University. These collaborations will broaden the educational offerings in key areas such as computer science, data science, artificial intelligence, engineering, health, business administration, and digital marketing.

The outlook for the rest of the financial year is positive, with the completion of several additional residential projects underway. Construction work on the extension of the Cascavelle Shopping Mall has already begun. The first phase is expected to be completed by May 2024. The second phase, which will triple the current mall’s area, is projected to be completed by the end of 2025,” Dhiren Ponnusamy explains.

Medine has also reduced its net debt to Rs 4.4 billion, in line with its commitment to the market to reduce the group’s debt. This marks the conclusion of the debt reduction program that Medine initiated in 2020. The recent bond issuance of Rs 1.4 billion, oversubscribed by Rs 400 million and rated ‘CARE MAU A; Stable’ by CARE Ratings (Africa), once again illustrates investors’ confidence in Medine’s financial strength and establishes a solid foundation for the long-term financing of its future projects.

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