Table of Contents
Key Points
- Evaco Group posted a loss of MUR54.59 million ($1.2 million) in H1 2024, reversing a profit of MUR11.34 million ($244,200) from the previous year.
- Revenue dropped from MUR347.94 million ($7.5 million) to MUR232.4 million ($5 million) due to administrative delays.
- Despite the loss, Evaco’s assets increased to MUR4.45 billion ($95.8 million), while equity and retained earnings declined.
Evaco Group, the investment holding company led by Mauritian businessman Arnaud Mayer, slipped into a loss in the first half of its 2024 fiscal year, as sales dropped due to administrative delays, rising operating costs, and broader economic uncertainty.
According to its unaudited results for the six months ended Dec. 31, 2024, Evaco posted a loss of MUR54.59 million ($1.2 million), a sharp contrast to the MUR11.34 million ($244,200) profit recorded in the same period the previous year. Revenue dropped from MUR347.94 million ($7.5 million) to MUR232.4 million ($5 million), while finance costs surged to MUR63.1 million ($1.36 million).
Administrative delays slow Evaco’s revenue recognition
The company attributed the revenue dip to delays in administrative approvals, which slowed the signing of title deeds and prevented it from recognizing expected earnings. “The full amount of turnover hasn't been recognized during this period due to persistent administrative delays. The authorities have been slower than expected in processing the required approvals for signing the title deeds. Consequently, we have been unable to finalize the planned deeds within the anticipated timeframe," the group said.
To address the issue, Evaco is working closely with the authorities to speed up approvals. “We are collaborating closely with the relevant authorities to accelerate the process. This will allow us to recognize the pending revenue, improving our financial performance in the upcoming quarters. The delays have also affected revenue from ongoing projects, but we expect these earnings to be reflected in the final quarter as measures to fast-track approvals take effect,” the company added.
Evaco’s assets up, retained earnings and equity decline
Founded by Mayer in 2001 as a real estate development firm, Evaco has become a key player in Mauritius’ high-end property sector. Through subsidiaries such as Evaco Creations, Evaco Property, Evaco Escapes, and Evaco Solutions, the group has expanded its footprint while maintaining a strong presence in the local market.
Despite the loss, total assets increased from MUR4.25 billion ($91.5 million) in June 2024 to MUR4.45 billion ($95.8 million) in December. However, equity declined from MUR635.2 million ($13.67 million) to MUR580.75 million ($12.5 million), while retained earnings fell from MUR395.4 million ($8.5 million) to MUR341.4 million ($7.34 million).
To strengthen its position in the real estate market and meet growing demand, Evaco has launched new high-end projects. The next phase of infrastructure work at Cap Marina, originally set to begin earlier, is now scheduled for the next quarter. Meanwhile, the group expects to complete the final units of Villa du Parc and all remaining duplexes by the end of the fiscal year.
