The sweet taste of Sugar... and diversified portfolios

2022 has overall been a profitable year for the Top 3 companies in the Agricultural sector. The key to success for this sector is a combination of factors: the rise of the price of sugar, an increased production of specialty sugars, additional income from bagasse, successful production in Africa as well as diversified portfolios such as real estate, energy or other products in the Agro-Industry.

Omnicane secures the leadership of the ranking with a turnover of Rs 8.76 Bn, a +63% rise from year 2021 (Rs 5.4 Bn). The group renews with Profit before tax of Rs 627 M. The Group is structured in a diversified range of activities, in Mauritius, in Africa (Kenya and Rwanda) and the UK. Omnicane’s La Baraque industrial cluster consists of a modern sugar factory, refinery, bagasse-coal cogeneration power plant, bioethanol distillery & Carbon Burn-Out Unit. It is engaged in property development at Mon Trésor, near SSR International Airport. In the African continent, it is present in Kenya with 20% equity stake in KISCOL and, in Rwanda, operation of a 5MW hydro-electric plant. Furthermore, in the UK, the Group has a 20.74% stake in Real Good Food (RGF), which is a manufacturer of sugar paste and marzipan.

As for Terra, it maintains the second place with a turnover of Rs 6.6 bn (+6%) and a whopping profit of Rs 1bn compared to Rs 367 M in 2021. Terra Group consists of four autonomous clusters: Cane, Brands, Power, and Property and Leisure. Improved global sugar prices helped the Cane cluster achieve profits of Rs 329 M while it stood at Rs 105 M in 2021. The tourism and hospitality sector contributions, in a high inflationary environment, helped Terra’s Brands cluster achieve a turnover increase from Rs 2.2 M to MUR 2.66 M in 2022. The Property and Leisure cluster generated increased profits from Rs 92 M in 2021 to Rs 293 M in 2022, following higher land sales, service fees, and the positive performance of the Mahogany Shopping Mall.

Alteo ranks at the third place due to the transfer of assets and liabilities of its African activities under the company MIWA Sugar Limited as from 1st October 2022. Alteo has activities in Tanzania and Kenya. Despite this transfer, Alteo’s turnover reaches Rs 4.4 Bn and PBT up to Rs 762 M. Alteo Group’s sugar operations benefited from a rise in the price of sugar on the world market, the selling price of which increased from Rs 14,000 to nearly Rs 17,000 per tonne. It also benefited from an increase in production of specialty sugars. Finally, it obtained a remuneration of Rs 3,300 per tonne for bagasse. These factors helped mitigate the increase in transport and production costs.