Sun Limited, the Mauritius-based hospitality and real estate group controlled by CIEL Group, posted a sharp increase in profit from continuing operations for the year ended June 30, 2026, as higher room rates, stronger property deliveries and resilient tourist demand boosted earnings. The stronger cash generation also allowed the board to increase its dividend.

Profit rises 14.8 percent

Profit after tax from continuing operations rose 14.8 percent to MUR1.52 billion ($32.9 million) from MUR1.33 billion a year earlier, according to the group’s audited financial statements. Profit before tax climbed 22.2 percent to MUR2.04 billion ($44 million), despite a MUR108 million tax charge linked to Mauritius’ Fair Share Contribution and Alternative Minimum Tax.

Earnings per share increased to MUR8.21 from MUR7.31. The board declared a MUR3.45-per-share dividend, 33 percent above the MUR2.6 paid for fiscal 2025, taking total distributions to MUR602.19 million ($13 million). Group revenue rose 16.4 percent to MUR7.57 billion ($163.5 million), while EBITDA increased 21.3 percent to MUR2.51 billion ($54.1 million).

Hotel rates drive earnings

The stronger earnings came as Sun’s hotel business benefited from higher pricing and improved room economics. Hotel revenue increased 8.9 percent to MUR6.33 billion ($136.7 million) from MUR5.81 billion, while excluding property developments, revenue rose 8.7 percent to MUR6.44 billion. Average daily rate climbed 10.8 percent, and revenue per available room increased 9.5 percent.

Hotel profit after tax rose to MUR1.34 billion ($28.9 million) from MUR1.16 billion in fiscal 2025, keeping resorts at the center of the group’s earnings. The performance reflects stronger yields across its Mauritius operations as the island’s tourism market continued to support pricing, occupancy and cash generation during the financial year.

Real estate delivered the fastest growth, with revenue nearly doubling to MUR1.13 billion ($24.4 million) from MUR575.63 million. Profit after tax rose to MUR159.35 million ($3.44 million) from MUR100.48 million. The gains were supported by construction progress at the La Pirogue residences, with deliveries to owners scheduled for November 2026.

Tourism demand stays firm

Tourism demand remained supportive as Mauritius recorded a 3.6 percent increase in international arrivals to 1,445,812 visitors during the period, with France, Reunion and the United Kingdom among the leading source markets. Sun generated MUR7.46 billion ($161.1 million) in total turnover from Mauritius, while other markets contributed MUR110.04 million ($2.38 million).

Stronger operating cash flow gave Sun room to accelerate debt reduction. Net cash generated from operations rose 26 percent to MUR2.48 billion ($53.5 million), allowing the group to make an early MUR500 million ($10.8 million) redemption of its Mauritius Investment Corporation redeemable convertible bond.

Debt falls as cash builds

Sun’s balance sheet strengthened as net debt fell 16.9 percent to MUR1.22 billion ($26.3 million) from MUR1.47 billion, while gearing declined to 12.8 percent from 16.8 percent. Total assets increased to MUR15.32 billion ($330.8 million) from MUR14.36 billion, and equity rose to MUR8.32 billion ($179.7 million) from MUR7.28 billion.