Bonvests Holdings (B28) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 3.7% YoY to $216.758m, while profit attributable to shareholders fell to $7.167m from $20.723m; lower EBITDA, fair-value gains and higher finance costs weighed on earnings.

• Group EBITDA, excluding fair-value movements on investment properties, declined 14.5% YoY to $48.799m, mainly on lower Rental, Hotel and Industrial contributions.

Financial highlights

• Revenue was $216.758m vs $209.024m in FY2022; profit before tax was $12.537m vs $26.000m, and profit after tax was $7.007m vs $20.176m.

• Profit attributable to shareholders was $7.167m vs $20.723m; EPS was 1.785 cents vs 5.161 cents.

• Excluding investment-property revaluation, deferred tax on revaluation, impairment, redevelopment and acquisition costs, and termination benefits, the reported adjusted loss after tax was $0.637m vs adjusted profit of $10.913m in FY2022.

• Operating cash flow was $43.289m; cash and bank balances ended the year at $29.686m, and investing cash outflow was $23.048m.

Outlook and guidance

• Rental faces continued pressure from higher operating costs; hotel markets are expected to remain competitive, with increased room supply and operating costs despite industry recovery.

• Industrial expects continued pressure from intense competition, material-cost increases and Progressive Wage Model wage requirements; priorities include cost control, cash management and winning contracts.

• Tunis hotel construction is ongoing and, barring unforeseen circumstances, is scheduled for operational completion by mid-2026; the Development Division has no active projects.

• Investment performance will remain exposed to stock-market volatility.