Mauritian resort group Lux Island Resorts posts $33 million profit as tourism surges

Lux Island Resorts Limited, the Mauritius-based hospitality group with luxury properties across the Indian Ocean, posted a 28.4 percent increase in full-year net profit for 2026, as stronger tourist arrivals in Mauritius, wider operating margins, and lower financing costs boosted earnings. The result gave the board room to raise the group’s total dividend by 20 percent.

Profit attributable to shareholders reached MUR1.55 billion ($32.6 million) for the year ended June 30, 2026, up from MUR1.21 billion ($25.4 million) a year earlier, according to audited financial statements. Pre-tax profit rose 29 percent to MUR1.88 billion ($40 million), compared with MUR1.45 billion ($30.5 million) in 2025.

The board declared a total dividend of MUR3 ($0.06) per share, amounting to MUR411.3 million ($8.7 million), versus MUR2.5 ($0.05) in 2025. The payout comprises an interim dividend of MUR1.25 ($0.02) and a final dividend of MUR1.75 ($0.03). Basic earnings per share rose 28.5 percent to MUR11.32 ($0.23).

Revenue gains, lower costs

Revenue also moved higher, with total income increasing 6.9 percent to MUR11.4 billion ($240 million) from MUR10.66 billion ($224.3 million). Net finance costs fell to MUR429.6 million ($9.03 million) from MUR474.7 million ($10 million), reflecting scheduled debt repayments that reduced the group’s financing burden during the year.

Mauritius remained the group’s main revenue engine, generating MUR8.17 billion ($172 million) in segment income, compared with MUR7.41 billion ($155.9 million) in 2025. Occupancy rose to 87 percent from 85 percent, underscoring stronger demand across the island as tourist traffic supported higher revenue and operating performance at the group’s resorts.

Réunion Island revenue edged up to MUR1.07 billion ($22.5 million) from MUR1.05 billion ($22.1 million), with LUX* Saint Gilles recording 78 percent occupancy. Mauritius delivered an operating segment result before finance costs of MUR1.81 billion ($38.1 million), up from MUR1.35 billion ($28.4 million), making it the clearest earnings driver.

Maldives demand weakens

Maldives demand weakened as regional pressures hit travel flows. Segment income slipped to MUR2.17 billion ($45.6 million) from MUR2.2 billion ($46.3 million), while occupancy fell to 67%. The company attributed the decline to reduced Gulf carrier seat capacity and geopolitical tensions in the Middle East, which weighed on visitor traffic.

The Maldives’ operating result before finance costs declined to MUR395.46 million ($8.3 million) from MUR442.72 million ($9.31 million). Réunion’s result fell to MUR98.94 million ($2.1 million) from MUR139.27 million ($2.9 million), reflecting local cost pressures and changing market conditions, even as the island’s revenue remained broadly stable.

Debt repayment strengthens balance sheet

During the year, Lux Island Resorts prepaid MUR750 million ($15.8 million) of Mauritius Investment Corporation convertible bonds issued during the pandemic and completed its acquisition of the LUX* Saint Gilles hotel land in Réunion. The moves reduced debt obligations while giving the group greater control over a key hospitality asset.

The stronger trading performance and capital allocation lifted total assets to MUR20.47 billion ($431 million) as of June 30, 2026, from MUR19.29 billion ($405.8 million) a year earlier. Total equity increased to MUR10.58 billion ($222.6 million) from MUR9.84 billion ($207 million), strengthening the balance sheet.

Net assets per share rose to MUR77.17 ($1.62) from MUR71.77 ($1.50), while gearing stood at 19.4 percent at year-end. The lower leverage gives Lux Island Resorts financial flexibility as it considers multi-year refurbishment projects across Mauritius, the Maldives and Réunion, while the higher dividend returns more of the year’s earnings to shareholders.