Value We Created in 2021
- Customers
- Employees
- Communities
- Government
- Suppliers
- Providers of Financial Capital
Our Business at a Glance
Our Organisational Structure
These clusters are autonomous in their decision-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 shared performance-based culture, and at driving operational excellence and efficiencies across the Group.
TERRA MAURICIA LTD
*The 2019 figures have been restated
Our Business Model
Chairman’s Message
2021 was a catastrophic year in terms of the impact of Covid-19 on the economy of Mauritius. The Mauritian borders were totally closed for eight months of the year, and even the tentative openings in July and October when people could fly in without quarantine, did not ease the impact. Most significantly, Covid-19 created large-scale supply chain disruptions, affecting all our businesses. The cost of freight, particularly for sugar exported to Europe, was significantly higher, impacting our profitability. We also continued to be impacted by a serious drought, thus creating an almost perfect storm of events. Despite this tough environment, our operational performance was quite robust, thanks to the exceptional efforts of our management team to keep all our clusters going. On top of this, there were several notable wins, including the financial compensation we are now getting for bagasse, which has contributed to 2021 being a profitable year.
Managing Director’s Message
Is it the end of Covid? Is it the start of a new cold war? We are in the middle of unpredictable times, and both will have a significant impact on Terra’s future.
Financial Review
Net Asset per share at 31 December 2021 was MUR 62.2, up from MUR 59.7 in 2020. The Group’s balance sheet remains strong, with owners’ interest at MUR 14.2 billion and Group gearing remaining at the reasonable level of 22.8%. The financial position allows us to pursue our investment strategy, and to remain resilient.
Our Stakeholder Relationships
Our ability to deliver value depends ultimately on the contribution and activities of a range of different stakeholders, and on the nature and quality of the relationship that we have with these stakeholders at both a Group and individual cluster level. There are many various stakeholders who have an interest in, and who can exert some influence over our decisions and activities. The nature and impact of these different stakeholder relationships vary significantly between each of our clusters.
In the diagram below, we briefly outline those stakeholder groups that we believe have the most substantive impact on the ability of Terra, as a whole, to create value over the short, medium and long-term. We have prioritised these stakeholders, informed by our assessment of their level of interest and dependency on our activities, and by the extent to which they can influence the development and execution of our strategy.
In the accompanying tables we briefly review the “value contribution” of each stakeholder group to Terra, summarise how we engage with that group, identify their priority interests relating to our activities, and provide our assessment of the quality of our current engagement activities with that stakeholder group. Additional context on these stakeholder relations is provided in each cluster review.
Managing our Material Risks
RISK MANAGEMENT
Terra has a structured and systematic process of identifying and managing all material risks across the Group. At the end of 2020, Ernst & Young (EY) was appointed to review the Risk Management Framework and the Group Risk Policy. During this exercise, the risks of each cluster and those relating to the Group were reassessed. The principal risks that have a material impact on Terra’s ability to create value at Group level are outlined in the list below. Cluster-level risks are shown in their respective operational review.