IBL’s focus this year has been on moving forward together. While the COVID-19 crisis continues to impact some of our businesses, it has also been an opportunity to take stock of our activities’ strengths improve how we work with the benefit of hindsight and accelerate our investment in key growth areas, including fast-tracking our expansion into East Africa.

Thanks to the ongoing engagement of our people as well as our agility, geographical and sectoral diversification, solid financial foundations and the ongoing support of our shareholders and other stakeholders, IBL has weathered the crisis better than many of its peers. Our performance demonstrates that we are emerging from the pandemic stronger and more resilient than ever. It is my hope that the worst is now behind us.

After a difficult year in 2019-20, IBL saw a rapid recovery in almost all its activities except its hospitality, aviation and property businesses.

The group’s total revenue declined by only 2% (from Rs 36.54bn last year to Rs 35.86bn this year end), mostly attributable to the poor performance of our hospitality cluster. The latter saw an operating loss of Rs 1bn, reflecting a cumulative Rs 4.2bn decline in revenue and a Rs 1.8bn decrease in operating profit over the past two financial years. Our aviation and shipping activities were also severely affected by the COVID-19 pandemic and Mauritius’ border closures throughout the year, while BlueLife was impacted by lower property sales, lower rental income and lower turnover from hotels. Despite these challenges, the group posted a net profit of Rs 74.9m for the year, up from a loss of Rs 1.43bn last year.

Among our associates, Alteo had a very good year, with profit after tax up by Rs 1.64bn compared to FY2020 thanks to higher sugar prices and favourable fair value movements, while AfrAsia’s total operating income declined by 32% to Rs 2.58bn and its profit after tax declined by 41% to Rs 916m due to interest rates being at a historic low.

This is despite the fact that COVID-19-related restrictions were in place all year, as opposed to last year, during which we operated normally for nine months before the emergence of the pandemic. It reflects not only the relevance and strength of our businesses and brands, but also our ability to quickly adapt, both on an operational level and on a human one.

IBL’s priority remains to safeguard our teams, partners, clients, and community, as well as to protect shareholder value as much as possible. When Mauritius’ second COVID-19 lockdown was announced in March 2021, our business continuity plans and safety & health protocols were already well-established. They were immediately redeployed, with our teams coming into the office in shifts to minimise the virus’ potential spread; personal protective equipment readily available; and stringent sanitary practices keeping our employees and clients safe, both at Head Office and across our Operations. We accelerated our vaccination campaign, encouraging take-up among our staff and front-liners in particular (in logistics, supermarkets, hospitality, etc.), and contributing to the government’s goal of achieving herd immunity in Mauritius. IBL’s leadership was vaccinated early, and we actively communicated about the importance and benefits of vaccination

Throughout the group, our businesses have pivoted and reorganised how they work to tackle challenges such as disrupted supply chains, changing customer expectations and the need for stringent sanitary measures. They also quickly repositioned to take advantage of the new opportunities that have emerged in areas such as medical testing and consumables. The businesses that have been most acutely impacted by the pandemic, including our hospitality and property activities, have taken steps to conserve cash and limit their overheads while preparing for a recovery in the travel and tourism markets.

COVID-19 has also accelerated IBL’s digital transformation journey, with businesses embracing new technology solutions to create value for customers and employees while safeguarding their cyber-resilience and security in the face of new threats. Now more than ever, IBL is aware of the need to have the right talent to adapt to a fast-changing environment. We are therefore focusing on standardising and improving our approach to succession planning and talent management across the entire group, including subsidiaries.

On a national level, IBL has continued to work closely with the national authorities and Business Mauritius on public policy measures and the national budget. Fondation Joseph Lagesse and our group’s other CSR entities are also actively supporting our community, donating food and other essentials to front-liners and those most at risk in vulnerable areas.

IBL continues to pursue its strategy of strengthening its Mauritian core, developing in the region and expanding internationally. However, the group also refreshed its strategy early in the third quarter, identifying three major growth areas that it intends to pursue going forward: Renewable Energy, Healthcare, and opportunities in East Africa.

These strategic ‘sprints’ reflect not only COVID-19’s short-term impact on our operating context, but our changing ambitions and the new market opportunities that have emerged in recent years.

Our expansion into African markets is a major strategic and executive focus for IBL. We believe there is a significant opportunity to develop our group in East Africa. We are continually assessing potential targets for acquisition in the region, building on the excellent work of our business development team in Nairobi. Our ambition is to create a full-fledged IBL Africa, basedin Nairobi and with its own executive team, within the next five years. We are currently structuring our presence in Kenya, identifying a team and seeking out adequate financing.

The Healthcare sector has been given a boost by the COVID-19 pandemic, and our health-related activities are poised for acceleration in Mauritius and the wider region. We have notably separated our medical distribution business from our fast-moving consumer goods business and appointed a dedicated COO for the latter activity. We are also developing new medical destinations that will soon be operational in several parts of Mauritius.

With Renewable Energy the fastest-growing energy source in the world, IBL is seeking to build upon its existing expertise to capture a share of this growth. We have now recruited a seasoned management team to drive our renewable energy business and have carried out a strategic review in partnership with McKinsey. Its recommendations will be implemented starting this year. In the interim, we will continue to develop the business’ capacity and know-how and seek to expand into the region.

I am extremely pleased about how the group has weathered the COVID-19 storm. The numbers speak for themselves. However,we do expect some short-term volatility in the market, and we will need to remain vigilant and closely monitor our costs. It is important that we structure our activities appropriately to ensure that our growth remains sustainable. And while our roots remain firmly Mauritian, it is nonetheless crucial that we seek out new business opportunities elsewhere.

I am also heartened by the fact that we have seen lots of great new talent join IBL recently. I believe that this is because we are perceived as a strong, stable company able to offer job security in an uncertain climate, but also as a dynamic group that provides employees with exciting career opportunities. We must build upon these strengths and continue to position ourselves as a Great Place to Work.

Our main priorities for 2021-22 are to recruit the right people to deliver on our strategy, ensure we have the right financial resources to support our growth and identify acquisition opportunities to drive our international expansion. If we achieve these objectives, I believe that our prospects are very brightindeed.

The crisis has had a major impact on all of our stakeholders, from our teams, who have had to adapt to new ways of working, to members of our community who are experiencing hardship during this economic downturn. I am immensely grateful to our people for their ongoing commitment and hard work despite the difficult circumstances. I am also grateful to IBL’s Chairman, Jan Boullé, and to our Board of Directors for the support and advice they have provided to the executive team since the start of the crisis. And finally, I would like to thank our shareholders and financial partners for their continued confidence in IBL.