Dear Stakeholder,
The past 18 months have been unlike any other in living memory. The world we live in has undergone unprecedented change. COVID-19 has infected over 200 million people, taken close to five million lives and seriously challenged healthcare systems worldwide. Many industries have come to a standstill, with numerous people losing their livelihoods.

As a group, and as a community and country, we have risen to the challenge of COVID-19 by working together. At a national level, IBL joined forces with the authorities to promote vaccination and bring PCR testing closer to the community. We also collaborated with the Mauritian government, local banks and other business groups to develop appropriate policies to support COVID-19-impacted industries. Several of our operations benefitted from the government’s Wage Assistance Scheme and support from the Mauritius Investment Corporation. We acknowledge this assistance was essential, as was the support of our bankers, who offered forbearance measures.

Within IBL, we have devised new ways of working, accelerated our efforts to improve our efficiency and captured emerging business opportunities in a variety of industries. Our priority remains to keep our teams, customers and partners safe, and to ensure that our group remains strong and stable by controlling costs and taking a proactive and flexible approach to decision-making. This has required good communication and engagement on the part of our staff and leadership. It has also allowed us to prepare for the economic recovery.

SHAREHOLDER VALUE

PERFORMANCE
Overall, I am pleased with our achievements during the year and the progress we are making towards our goals. IBL’s performance for the year ended 30 June 2021 has been encouraging: while the drop in our travel and tourism-exposed businesses explains most of the Rs 2bn decline in operating profit since 2019, our other businesses have seen healthy comparative growth in operating profit of 22% over the past two years. This translates to an 81% increase in profit before tax over this period, including the positive contribution of associates and joint ventures.

STRATEGY
While the past two years have once again demonstrated the benefits of IBL’s industry and geographical diversification, they have also taught us about the vulnerability of our supply chains and the Mauritian hospitality industry, and highlighted the need to actively pursue our regional and international expansion.

This year, we conducted a strategic review with the help of McKinsey, and are now focusing on an expansion plan into East Africa by seeking out potential partnerships and businesses to invest in. We have also identified healthcare and renewable energy as sectors presenting significant growth opportunities. IBL has over a century of experience in the distribution of pharmaceuticals, medical equipment and medical consumables. Our ambition is to take this expertise to the wider region and onto the African continent. Our people-focused leadership culture will be key to our success, and a clear human capital roadmap will support our regional strategy and ambitions.

Alongside this, IBL will continue to deliver on its Mauritian core strategy, which is one of optimisation and innovation, and leverage areas in which it has world-class expertise, such as our Seafood Cluster, to expand internationally.

GOVERNANCE AND RISK
The Board remains committed to good governance. It recognises that governance is key to IBL’s ability to effectively manage risks and anticipate changes in the group’s operating environment.

The Board continues to receive regular updates from IBL’s management regarding current and emerging systemic risks. Throughout the pandemic, the Board was informed about the lack of foreign currency on the local market, leading to a steep rupee depreciation and commodity price hikes. At a time when our companies were operating remotely, rising cybersecurity risks were also a concern. The group has remained vigilant and protected, and cybersecurity continues to be a high priority.

The notable progress that Mauritius has made towards being removed from the FATF greylist and consequently the EU blacklist is positive. We await the final decisions and outcomes.

Finally, we are conscious of the risks associated with our African expansion strategy. We actively seek to manage them by ensuring we identify and invest in the right markets and companies.

ACKNOWLEDGEMENTS
Jason Harel stepped down from the IBL Board on 31 December 2020. He had served as an Independent Non-Executive Director since the group’s amalgamation in 2016 and had previously been a Director on the Board of Ireland Blyth Ltd. On behalf of my colleagues on the Board, I would like to thank Jason for his many contributions and valuable advice over the years.

We have welcomed Richard Arlove as a new Independent Non-Executive Director. Richard has a lengthy track record in the global business and accounting industries in Mauritius and internationally, and brings specific experience in financial management, corporate governance, cross-border investment and trade structuring, with a particular focus on African markets. Richard has taken over from Jason Harel as the chair of IBL’s Audit & Risk Committee.

Martine de Fleuriot has replaced Thierry Lagesse on the Governance committee and Benoit Lagesse has replaced Maxime Rey on the Audit committee.

In 2021, an IT Governance Committee Charter was created and approved for the Group, chaired by Isabelle de Melo, an Independent Non-Executive Director.

During the year, the Board approved a revised Conflict of Interest and Related Party Policy to prevent insider dealing and manage Directors’ and Executives’ potential conflicts of interest.

In the coming years, we intend to develop a specific governance structure for IBL East Africa in Nairobi.

OUTLOOK
Although the economic disruption associated with COVID-19 has started to ease, it remains unclear when and under what circumstances we will emerge from this crisis. In the short term, IBL’s performance will continue to depend on the evolution of the pandemic worldwide, and in particular on the success of Mauritius’ border reopening.

The Board’s confidence in the group’s prospects explains the ongoing investment in COVID-impacted activities such as shipbuilding and hospitality. We believe that IBL’s diversified portfolio and geographic footprint, its effectively managed businesses, and its strong market positioning provide a solid foundation for growth as the world economy begins to recover.

ACKNOWLEDGEMENTS
I would like to express my sincere thanks to all of IBL’s teams under the leadership of the Group CEO, Arnaud Lagesse. The Board and I are aware that it has been a challenging and unsettling few years, and we are grateful for our people’s continued engagement and commitment.

Thanks are also due to our shareholders and financial partners for their continued trust, and to my fellow Board members, including outgoing Director Jason Harel, for their invaluable support and collaboration.

 Leadership report