Page 93 - flipbook-ubp-IR

Our Group operating profit decreased from Rs 308.6 million in FY2021 to Rs 215.7 million for the year under review, due mainly to a significant increase in our local core business activities production costs arising from an increase in imported inputs, repairs and maintenance and quarrying costs. In addition, our profitability was also adversely impacted by exceptional transition expenses incurred in relation to the management of Pre-Mixed Concrete Limited, upon the takeover, and by the substantial due diligence costs incurred for the acquisition of a group of companies in Reunion Island, which was concluded in June 2022.
On the foreign front, our subsidiaries operating in Madagascar and Sri Lanka incurred lower operating losses than in 2021. However, the Board has decided to exit from these countries and to dispose of our subsidiaries as soon as an opportunity arises. Hence, the results of both entities have been classified as discontinuing operations in the statement of profit or loss and other comprehensive income for the year under review.
Our Espace Maison retail activities segment performed much better than in 2021, due to a significant increase of 20.6% in revenue and an increase in other operating income.
In terms of our agricultural activities segment, the operating loss of Compagnie de Gros Cailloux Limitée for the year was lower than in 2021 due to the improved performance of our vegetable-growing activities and an increase in the price of sugar compared to previous year.
Our allowance for Expected Credit Losses (ECL) on financial assets increased significantly for the year under review due to the liquidation of one of our clients in July this year.
The strategic acquisition of a 51% stake in Pre-Mixed Concrete Limited was made by exercising our right of first refusal and transacted at a very high non-negotiable purchase consideration, which had been agreed between the selling shareholders and an external willing buyer. The benefits to be obtained by the Group entities, could not be factored in the goodwill impairment test at June 30, 2022. Hence, an amount of Rs 340.7 million was accounted as goodwill impairment for the year. Conversely, the deemed disposal of our 49% share as associate has generated a gain of Rs 158.2 million.
Our share of results from associates for the year improved compared to previous year following the conversion of our ready-mixed concrete entity from associate to subsidiary during the year.
Our Group EBITDA decreased from Rs 601.3 million for FY2021 to Rs 529.8 million for the year under review while our Group net result for the year decreased from a profit of Rs 215.6 million to a loss of Rs 56.7 million. As explained above, this was mainly due to the net impact of the acquisition in Pre-Mixed Concrete Limited. Consequently, our earnings per share decreased from Rs 7.40 for FY2021 to a loss of Rs 2.55 this year.
Rs’000
300,000 250,000 200,000 150,000 100,000
50,000 0 -50,000
Core business
Retail FY2022
Agriculture FY2021
SEGMENTAL REPORTING PROFIT
Statement of Financial Position
Total assets
Interest bearing loans and borrowings
Borrowings excluding bank overdrafts
Equity attributable to shareholders of the parent
Net assets value per share
Financial Ratios
Operating margin - % Interest cover - times Dividend cover - times Return on equity - % Return on assets - % Debt to equity - times
Year ended
June 30, 2021
Rs’ 000 5,617,932 1,020,102 963,146
3,556,026
Rs 134.14
2021 9.46 9.33 2.47 5.52 3.49 0.29
CORPORATE FINANCIAL GOVERNANCE STATEMENTS
June 30,
2022
Rs’ 000
6,409,426
1,825,736
1,483,328
3,441,750
Rs
129.83
2022
5.40
0.39
(0.85)
(1.96)
(1.05)
0.53
UBP INTEGRATED REPORT 2022
91
OUR PERFORMANCE
(5,098) (21,883)
61,457 28,447
159,337
302,032