The Group consists of four autonomous clusters: Cane, Power, Brands, and Property and Leisure. Each cluster offers unique business know-how that sets it apart from its competitors and that provides a strong platform for value growth.
These clusters are autonomous in theirdecision-making processes, budgeting and reporting, as well as in the day-to-day running of their operations. The leadership team of each cluster is fully accountable for their cluster’s respective performance, and is empowered to develop their own businesses and to realise international growth opportunities in line with proposals and plans approved by Terra’s Board of Directors.The clusters are supported by specific centralised functions aimed at developing a sharedperformance-based culture, and at driving operational excellence and efficiencies acrossthe Group
Group Turnover (MUR’M)
Group Profit/Loss after Tax (MUR’M)
Turnover - Contribution of each Cluster (MUR’M)
Profit after Tax - Contribution of each Cluster (MUR’M)
2020 was a very challenging year for Terra, with some issues specific to the Group (such as the expiry of vital contracts) and an economic and social environment significantly affected by the ravaging effects of a pandemic of global proportions, which no one saw coming in its scale and impact. The effects of the virus extended beyond human health considerations to fundamentally impact our local economy, as well as those of our main trading partners. The unfortunate loss of life of millions across the world has been as devastating as the crippling effects that government-imposed lockdown measures have had on world economies. The pandemic stole lives and livelihoods. Mental health has also become a major concern in many countries. The fear factor is not just the fear of catching the virus, but also fear of what tomorrow brings in terms of job security and way of life. There have been significant worries about joblessness and the negative impact on society as a whole, including an increase in inequality.
I wish to express my appreciation and gratitude to my colleagues on the executive and the management teams in each of the clusters, as well as to Terra’s employees at all levels in the Group, for their resilience and unflinching commitment in these difficult and unusual times. I would also like to thank my colleagues on the Board for providing valuable advice and oversight, and for taking important decisions on investments for the future. The Board members have provided incredible support amidst the Covid-19 crisis and shown us that they are confident in what we are doing.
The fact that we have been able to generate operational profits during this tough period is commendable.
We will continue to adapt, to be agile and to ride the storm!
Financial
REVIEW
Group turnover for 2020 was MUR 4.8 billion, down 5.8% from MUR 5.1 billion in 2019. Despite the impact of the Covid-19 pandemic, all the Group clusters, except for the cluster ‘Others’, remained profitable and resilient. While the pandemic impacted all our operations to varying extents, it had a particularly significant impact on the Brands and Property and Leisure clusters, both of which were affected by the closure of our borders. The Group’s overall financial performance has been substantially impacted by impairments, which was the main cause of the Group losses of MUR 210.4 million for the year, as compared with a restated profit of MUR 446.6 million in 2019.
The Group’s net assets for 2019 have been restated favourably by MUR 130.6 million to reflect our share of adjustment arising from the Sucrivoire S.A. (Sucrivoire) 2019 audited results that were communicated to us after the approval of Terra’s 2019 audited financial statements
