Group Chief Financial Officer’s report

The financial year ended 30 June 2026 was an important year in translating the Group’s investments of recent years into stronger operating performance and a sounder financial position. With the major acquisitions completed, integration, portfolio reshaping and deleveraging took priority. Growth was broad-based: revenue increased by 13.2% to Rs 124.3 billion and EBITDA rose by 10.6% to Rs 14.0 billion, with each of the four clusters reporting higher turnover and EBITDA. These results were achieved against a challenging backdrop, underlining the resilience of the Group’s business model.

Play video

The operating environment was shaped by significant external shocks, most notably the conflict in the Middle East, which disrupted supply chains, raised energy and freight costs and affected tourism flows in certain markets. In Mauritius, household spending came under increasing pressure as the year progressed. Once again, the diversity of the Group’s sectors and geographies proved a key strength, enabling us to absorb these pressures while continuing to grow. Combined with a strong focus on operational excellence and financial discipline, this diversification provides a strong foundation for sustained financial performance.

Integration was at the centre of our strategy this year, with a clear focus on execution: drawing on the Group’s scale and sharing best practices to deliver sustainable revenue and operating profit growth across increasingly integrated clusters. At the same time, we made marked progress in deleveraging the Group. Total borrowings fell from Rs 45.0 billion to Rs 39.9 billion and gearing from 52% to 44%, while net debt to EBITDA improved from 3.8x to 3.0x. The Group now carries less debt relative to the earnings available to service it, and lower finance costs are already lifting profit.

Growth was disciplined and mostly organic, driven by opening new stores, launching new products and widening distribution in our existing businesses. In parallel, we continued to reshape the portfolio through strategic alliances, such as the planned combination of Run Market and Caillé Grande Distribution, targeted portfolio management initiatives and the divestment of non-core assets, which allowed us to redirect capital towards the businesses offering more attractive risk- adjusted returns.

Group financial performance

The table below presents an abridged statement of profit or loss, extracted from the audited financial statements on page 190.

Revenue, operating profit and EBITDA

Of the Rs 14.5 billion increase in Group revenue, Rs 12.3 billion was organic, reflecting the Group’s move into a phase of integration and consolidation after the major acquisitions of the previous three years. This organic growth came from both higher volumes in existing businesses and a wider footprint. The remaining Rs 2.2 billion was inorganic, coming entirely from the first-time consolidation of Seybrew in Seychelles by Phoenix Beverages.

Retail remains the Group’s largest cluster, contributing 46% of revenue, a slightly lower share than last year, mainly because Run Market is now presented within discontinued operations. Consumer Brands & Distribution is the second-largest contributor at 23% (FY 2025: 22%), while Industrials and Services each account for approximately 15%. This balance continues to provide the Group with a diversified and resilient revenue base.

East Africa has become a major contributor to that base. Subsidiaries acquired in the region over the past three years contributed Rs 49.3 billion to Group revenue, reflecting the scale the Group has built there. With a growing middle class, favourable demographics and a steady economic outlook, East Africa remains an attractive platform for long-term growth.

Revenue growth translated into higher profit. Operating profit rose by 13.7%, or Rs 1.0 billion, to Rs 8.3 billion, slightly outpacing revenue, with all four clusters contributing increases ranging from 9% to 32%. The Group’s operating margin held steady at 6.7%, as improved margins in Retail, Services and Industrials offset pressure in Consumer Brands & Distribution. EBITDA increased by 10.6% to Rs 14.0 billion (FY 2025: Rs 12.7 billion).

Performance by cluster

Retail

Retail recorded the largest revenue increase in absolute terms, up by 10.8% (Rs 6.0 billion), and the strongest improvement in profitability: operating profit rose by 31.9% to Rs 2.7 billion and the operating margin improved from 3.7% to 4.5%, demonstrating that expansion is translating into earnings.

In Kenya, Naivas, which now operates 114 stores, further consolidated its market leadership, with growth from both existing and new stores across all major categories, supported by continued operational improvements. In Mauritius, Winners, one of the country’s leading supermarket chains with 28 stores, grew revenue through new outlets at Manhattan, Orchard and Windsor, and the reopening of Garden Tower. In a highly competitive market, it maintained its margins through pricing discipline, an improved promotional mix and efficient purchasing. While retail margins are structurally modest, the cluster generates strong returns on capital, underpinned by a light fixed-asset base and a favourable working capital cycle.

Consumer Brands & Distribution

Consumer Brands & Distribution recorded the strongest revenue growth of all clusters, at 17.9% (Rs 4.6 billion), supported by the consolidation of Seybrew, higher turnover at Phoenix Beverages in Mauritius, and growth at BrandActiv, Harley’s and HealthActiv. Operating profit increased by 9.1% to Rs 2.3 billion, although the operating margin eased from 8.1% to 7.5%, reflecting pressures that are largely temporary.

In Beverages, Seybrew made a positive contribution in its first year of consolidation. In Réunion, Phoenix Beverages’ operations recorded a loss owing to temporary production disruptions and set-up costs ahead of the Coca-Cola bottling and distribution operations. These begin on 1 October 2026 and are expected to strengthen Réunion’s contribution over time.

In Healthcare Distribution, Harley’s margins were affected by supply chain disruptions linked to the Middle East conflict, while HealthActiv’s profitability was constrained by a higher cost base, adverse exchange rate movements and one-off write-offs. BrandActiv, by contrast, delivered a solid performance.

Services

Services revenue rose by 13.5% (Rs 2.3 billion), while operating profit grew faster, by 23.3% to Rs 3.2 billion, lifting the operating margin from 15.1% to 16.4%. The cluster remains the Group’s largest profit contributor, accounting for 33% of cluster operating profit.

In Hospitality, Lux Island Resorts benefitted from higher occupancy and RevPAR in Mauritius and Réunion, while in the Maldives higher average daily rates more than offset lower occupancy linked to the Middle East conflict. Performance was broad-based across the cluster: Bloomage increased its rental income, Eagle Insurance strengthened its performance,

The Lux Collective, BlueLife, Confido and City Brokers all delivered improved results, and Aviation achieved a notable turnaround. Logistics was the exception, as lower activity levels and higher administrative and staff costs weighed on profitability.

Industrials

Industrials revenue grew by 10.4% (Rs 1.9 billion), led by CNOI’s shipbuilding activity, higher sales at Marine Biotechnology Products, and IBL Energy’s construction of the Seabrew Solar Farm. Operating profit increased by 13.5% to Rs 1.5 billion, with the operating margin improving from 7.3% to 7.5%.

CNOI’s revenue growth was driven by the construction of Captain Arctic, a 70m luxury polar explorer yacht, although higher shipbuilding costs narrowed margins. In the Seafood hub, Marine Biotechnology Products expanded its margins, partly offset by lower volumes at Froid des Mascareignes.

Manser Saxon improved its profitability on the back of stronger project execution, and UBP benefitted from better manufacturing margins in Réunion, which partly offset softer volumes in Mauritius. The Commercial Engineering sub-cluster also progressed, supported by higher sales at ServEquip and Blychem.

Geographical breakdown

Revenue increased across our geographies, leaving the revenue mix broadly unchanged once Run Market is excluded. Mauritius and East Africa remain our two largest markets, while the Indian Ocean region recorded the fastest growth among our main markets, supported by the first-time consolidation of Seybrew. East Africa was the largest contributor to the increase in Group profit, reflecting the continued progress of Naivas and Harley’s.

Associates

The Group’s share of profit from associates and joint ventures rose by 56.1% to Rs 564.5 million. Most of this improvement came from the Industrials cluster, where the Group’s share increased from Rs 320.7 million to Rs 434.6 million, led by higher contributions from Princes Tuna (Mauritius) and Miwa, whose profit increased significantly on the back of volume and pricing gains at TPC and Transmara Sugar Company, favourable pricing conditions and improved cane availability. Alteo also had a good year, supported by the first residential deliveries at Anahita Beau Champ Smart City and stronger margins in its Energy business.

In Services, the Group’s share more than doubled from Rs 63.7 million to Rs 145.0 million, driven by a higher contribution from the healthcare associates held through Life Together and from our financial services associates.

Profit after tax (PAT)

Excluding discontinued operations, PAT increased by 12.6% to Rs 4.1 billion. Stronger operating performance, a higher contribution from associates and lower finance costs more than offset a Rs 585.7 million adverse swing in other gains and losses and a Rs 253.3 million increase in the tax charge. Other gains and losses moved from a gain of Rs 58.3 million to a loss of Rs 527.4 million, mainly as a result of non-cash impairment losses and the remeasurement of obligations linked to put and call options.

The higher tax charge reflects stronger profits, notably in Kenya, and the first-time application of the Fair Share Contribution in Mauritius, which represents a structural increase in the Group’s tax burden. Under the OECD’s Pillar Two global minimum tax rules, all jurisdictions in which the Group operates qualified for the transitional safe harbours, as such no top-up tax has been identified.

Profit for the year amounted to Rs 4.1 billion, compared with Rs 5.0 billion in FY 2025. The decrease is largely attributable to discontinued operations, whose contribution declined from Rs 1.9 billion to Rs 584.9 million, mainly reflecting the decrease of AfrAsia’s contribution following the sell-down in July 2025.

Underlying profit after tax

Underlying profit after tax from continuing operations increased by 65.4% to Rs 4.3 billion. By excluding other gains and losses, as well as exchange gains and losses, this measure best reflects the recurring earnings of the Group’s businesses, and highlights the strength of the operating drivers described above.

Profit attributable to shareholders

Profit attributable to owners of the parent decreased by Rs 1.3 billion to Rs 1.7 billion, while profit attributable to non-controlling interests increased by 19.4% to Rs 2.4 billion. This decline is explained by discontinued operations, whose contribution went almost entirely to owners of the parent. From continuing operations, profit attributable to owners of the parent increased by 6.9% to Rs 1.2 billion, showing that the Group’s ongoing businesses continue to create value for shareholders.

Group statement of financial position

Total assets increased by 5.8% to Rs 151.1 billion. Non-current assets rose by Rs 9.3 billion to Rs 102.9 billion, driven by property, plant and equipment (up Rs 6.4 billion) and intangible assets (up Rs 5.0 billion), mainly reflecting the consolidation of Seybrew and capital expenditure across the Group. Right-of- use assets decreased by Rs 1.3 billion, largely due to the reclassification of Run Market. Current assets were stable at Rs 41.9 billion. Assets classified as held for sale now relate to Run Market, at Rs 6.2 billion, replacing AfrAsia, which was classified as held for sale at Rs 7.2 billion in the prior year.

Total liabilities were stable at Rs 98.5 billion, but their structure improved significantly. Current liabilities decreased by Rs 7.5 billion to Rs 39.3 billion, as short-term debt was repaid using the AfrAsia proceeds and the remaining USD-denominated debt was refinanced on a long- term basis. Total borrowings decreased from Rs 45.0 billion to Rs 39.9 billion. Liabilities associated with assets held for sale amount to Rs 6.1 billion, relating to Run Market.

Total equity increased by 18.7% to Rs 52.6 billion, supported by higher retained earnings and reserves, and a Rs 5.5 billion increase in non-controlling interests. Net assets per share rose by 16.0% to Rs 37.13, and equity now funds 34.8% of total assets (FY 2025: 31.0%).

Borrowings and gearing

Net debt to EBITDA improved from 3.8x to 3.0x, as anticipated last year. This reflected both lower net debt and higher EBITDA, supported by a 20.4% increase in net cash generated from operating activities to Rs 8.2 billion. Gearing also declined, from 52.0% to 44.5%.

The largest reduction in debt was at IBL Ltd (the “Company”), which repaid most of its USD bridge loan using the AfrAsia proceeds. This was partly offset by higher borrowings at Phoenix Beverages, mainly to fund the Seybrew acquisition, and at Lux Island Resorts, following the acquisition of the land at LUX* Saint Gilles and the prepayment of the Rs 750 million Mauritius Investment Corporation (MIC) bond.

Return metrics

Return on Equity (RoE) declined to 8.5% from 11.8% in FY 2025, while Return on Assets (RoA) fell to 2.8% from 3.7%. Both movements reflected the lower contribution from discontinued operations. In contrast, Return on Capital Employed (ROCE) increased to 8.8% (FY 2025: 8.0%), driven by stronger operating profitability and more efficient use of capital.

Company profit or loss

As a standalone entity, IBL Ltd combines two core activities: the operation of its trading businesses, principally BrandActiv and HealthActiv, and the management of its investment portfolio. For the year ended 30 June 2026, the Company reported a loss of Rs 86.1 million, compared with a profit of Rs 615.0 million in the previous year. While the operating businesses performed well, as described in the Group Performance review above. The Company’s result was mainly affected by three factors: lower dividend income following the AfrAsia sell-down, an adverse swing in exchange differences, and a net loss of Rs 229 million on derivative instruments (FY 2025: gain of Rs 4 million), recognised in other gains and losses. This loss arises from the remeasurement of options over shareholdings in certain subsidiaries, which also increased the derivative financial liability at 30 June 2026.

Company statement of financial position

The Company’s total assets were broadly stable at Rs 54.8 billion (FY 2025: Rs 54.7 billion), although their composition changed. The AfrAsia stake, classified as held for sale at Rs 7.1 billion at 30 June 2025, was sold in July 2025. Investments increased to Rs 47.4 billion from Rs 41.6 billion, the lower prior-year figure reflecting the classification of the AfrAsia investment as held for sale. During the year, the Company repaid a significant portion of its debt and refinanced its remaining USD-denominated borrowings through a MUR-denominated facility.

Company investment portfolio

The investment portfolio reached Rs 47.4 billion in FY 2026, representing an increase of Rs 3.5 billion (8.1%) from Rs 43.9 billion before revaluation with the remaining fair value movement relating to option accounting. During the year, the Company recorded net disposals of Rs 4.9 billion, primarily comprising the sale of a 20.3% stake in AfrAsia (already classified as held for sale at FY 2025), reducing its holding from 30.3% to 9.99%, the disposal of its 100% stake in Intergraph (also classified as held for sale) and the disposal of 80% of its 100% stake in Scomat. The remaining stake in AfrAsia has since been reclassified to Other Financial Assets, while the retained 20% stake in Scomat is now accounted for as an associate rather than a subsidiary.

This increase in the portfolio was mainly driven by fair value gains across unquoted investments, which more than offset an overall decline in the value of quoted investments, and reflects continued value creation within the Group’s core subsidiaries.

The Services cluster remains the largest contributor, accounting for 35.7% of the investment portfolio, with Hospitality and Property as its key investments. The Retail cluster represents 27.6%, primarily driven by its international operations, and the Industrials cluster accounts for 24.9%, with CNOI and the Seafood Hub as its main contributors. The Consumer Brands & Distribution cluster increased its contribution to 11.8% of the portfolio, further enhancing diversification through its broad distribution networks and range of brand-driven businesses.

Equity and borrowings

Total equity increased by 11.2% to Rs 30.5 billion from Rs 27.4 billion, driven mainly by higher retained earnings. Equity now funds 55.7% of the Company’s total assets, compared with 50.2% a year ago. Overall, the Company’s balance sheet is stronger, less leveraged and less reliant on short-term funding.

Total borrowings decreased by Rs 6.2 billion, or 27.1%, from Rs 23.0 billion at 30 June 2025 to Rs 16.8 billion at 30 June 2026. Short-term borrowings fell by 39.0% to Rs 7.3 billion and long-term borrowings by 14.1% to Rs 9.5 billion. Short-term debt now represents 43.5% of total borrowings, down from 52.1% a year ago, and the Company’s gearing reduced to 34.8% from 45.1%.

This reduction reflects debt repayments during the year and the refinancing of the Company’s USD-denominated borrowings through a MUR-denominated facility. Lower debt levels have already reduced net finance costs by 24.0%, from Rs 1.4 billion to Rs 1.1 billion, further strengthening the Company’s financial position.

IBL secured a Rs 3.0 billion loan facility maturing in October 2027. This facility will enable IBL to repay Rs 2.0 billion of bonds maturing in December 2026 and Rs 1.0 billion of bonds maturing in March 2027, both currently classified as current liabilities. This facility will also provide the necessary liquidity until the bonds are refinanced, which is targeted for the second half of FY 2027.

Company shareholder information

Profit before taxation Taxation Profit for the year

Conclusion

Measured against where the Group stood in 2016, the scale of change is striking: revenue has grown from Rs 31.0 billion to Rs 124.3 billion, EBITDA from Rs 3.9 billion to Rs 14.0 billion, and the share of revenue generated outside Mauritius from 13% to 51%. For me, however, the most significant result lies less in the scale than in the quality of growth.

In 2026, revenue and operating profit increased across all four clusters, and the Group achieved this while reducing debt. With a stronger and less leveraged balance sheet, IBL can continue to selectively invest in its businesses across the region, while remaining resilient in an uncertain external environment.

Looking ahead, we expect FY 2027 to be more demanding, with imported inflation from energy and supply chain costs, softer consumption as growth in Mauritius slows, and structural constraints in the labour market. In response, our priorities are fourfold: embed operational excellence and synergies across our clusters, drive organic growth from the platforms we have built in East Africa and Réunion, continue reducing debt, and allocate capital with discipline to the businesses that generate the best returns. These priorities will be supported by continued investment in shared digital platforms and in our sustainability agenda, including our readiness for IFRS S1 and S2 reporting. In doing so, we aim to continue creating value for the benefit of all our stakeholders.

I would like to thank our finance teams across the region, whose work has been central to integrating our businesses and strengthening the Group’s financial standing. I am also grateful to our banking partners and shareholders, whose continued support and confidence in IBL have made this progress possible.

Cédrik Le Juge de Segrais
Group Chief Financial Officer