African Sun Limited Reports 40% Increase in Q1 2024 Revenue to USD 11.1 Million with 8% Increase in Occupancy

Published On: August 6, 2024Company: African Sun Limited (ASUN.vx)
What conclusion can be drawn from the Q1 2024 Interim Report of African Sun Limited?
Despite facing several challenges, African Sun Limited has witnessed significant improvement in its first quarter performance compared to the previous year. The company has stayed debt-free, maintained a strong liquidity position, and declared a sizable dividend. Future expectations are optimistic due to the introduction of a new currency and expected recovery of the international market, combined with strategic investments in property refurbishments and digital infrastructure.

Summary of Key Points

  • The first quarter of 2024 faced monetary policy uncertainty, exchange rate distortions, inflationary pressure, and liquidity constraints due to a change in leadership in the Reserve Bank of Zimbabwe.
  • There was a notable impact from power outages and the effects of poor rainfall causing annual inflation rate to peak at 55.3% in March 2024.
  • The financial performance for Q1 2024 shows increased revenues and profitability compared to the same period last year.
  • The revenue for Q1 is at USD 11.1 million, a 40% increase from the prior year, driven largely by higher demand for conferences.
  • The domestic market served as the primary source of business, contributing to 76% of total room nights sold, while the international market is also recovering.
  • The Group recorded an EBITDA of USD 0.26 million, a substantial improvement from an EBITDA loss of USD 0.41 million in the same period last year.
  • The Group is debt-free and maintained strong liquidity with a cash balance of USD 8.6 million at the end of the quarter.
  • A final dividend of USD 350,000 was declared for the 2023 financial year.
  • Future growth is expected due to the recovery of the international market and investments in hotel property refurbishments and digital infrastructure.
  • The introduction of the Zimbabwean Gold currency is expected to improve market confidence and stabilize prices and exchange rates.

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About African Sun Limited (ASUN.vx)

African Sun Limited is a hospitality management company that is involved in the running of hotels, resorts, casinos and timeshare operations in Zimbabwe and South Africa. It operates through four divisions; Hotels Under Management, Hotels Under Franchise, Owner-managed Hotels and the Victoria Falls Hotel Partnership. Established in 1968 as Zimbabwe Sun Limited, the company has grown in stature to include Legacy Hospitality Management Services Limited, which manages five hotels and the InterContinental Hotels Group. Prestigious hotel brands in African Sun Limited’s expansive portfolio include The Victoria Falls Hotel, Holiday Inn, Great Zimbabwe Hotel and The Caribbea Bay Resort. African Sun Limited is a constituent of the Zimbabwe Industrial Index.

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Giri

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