(PORT-LOUIS) – Ranked among the Indian Ocean Island’s most traded stocks, New Mauritius Hotels (NMH) stated that its profit for the nine months ended 30 June dropped by 35%. Net earnings for the nine months amounted to 725 million rupees compared to 1 120 million rupees earned during the same period last year.

The company however managed to minimize the financial loss as its turnover amounts to 5.5 billion rupees compared to 508 billion rupees in 2009.

Net earnings for the nine months amounted to 725 million rupees after closure costs of 139 million rupees.

NMH attributes its underachievement to the average euro conversation rate and to the demand sliding towards cheaper accommodation. “Compared to the last year, profitability for the third quarter was impacted (…) more specifically by a shortfall of Rs 75m in respect of a weaker euro and to the ash clouds cancellation in April”, NMH said in a statement on Tuesday.

“With the difficult conditions prevailing in the industry and the uncertainty regarding the strength of the recovery in the euro zone, fourth-quarter results are likely to be similar to the third quarter performance”, the document further stated. And as a result, earnings per share for the nine months dropped from Rs 6.79 to Rs 4.26.

Confronted to its dipping profit, NMH decided to drop its resort development project in Morocco as the demand for villas fell.

By Guillaume Gouges