Chobe Holdings Limited Sees a 52% Jump in Profit Before Tax, Highlighting Strong Financial Performance with Increase in Occupancies and Net Achieved Rates

Published On: November 24, 2023Company: Chobe Holdings Limited (CHOBE.bw)
What are the key contributors to the improved financial performance of Chobe Holdings Limited?
The significant improvement in Chobe Holdings Limited's financial performance can be attributed to an increase in occupancies and net achieved rates, as well as the relative strength of US Dollar. Furthermore, post-COVID-19 recovery of global leisure travel and improved marketing efforts also played a notable role. The group has also actively managed procurement and applied innovative cost containment solutions to mitigate inflationary pressures.

Key Insights

  • Profit before tax witnessed a jump of 52%.
  • Bed nights sold saw an increase of 21%.
  • There was a 40% increase in total revenue.
  • Operation costs have also increased, proportionate to increased operations.
  • BWP 168 million cash was generated from operations.
  • The cash and cash equivalents at the period end were BWP 140 million.
  • Chobe Holdings Limited reported a significant improvement in financial performance throughout the first half of the financial year due to increased occupancies and net achieved rates, coupled with strong US Dollar.
  • Observing the trend of post-COVID-19 recovery in global leisure travel, the company improved its marketing efforts and operations on the ground.
  • Challenges persist due to global and local supply chains that add inflationary pressure to the overall cost base.
  • The group has returned to expansionary status by investing in asset upgrades including purchasing an additional light aircraft and opening the innovative Shinde Footsteps.
  • Employee salaries have been harmonized across the group, with above inflationary increments.
  • The remainder of the financial year shows strong bookings across the Group with similar strength projected for the subsequent financial year.
  • Despite global uncertainties, the strong cash position of the group allows for unique business opportunities.
  • In line with the company’s dividend distribution policy, no interim dividend has been declared, favouring a final year-end declaration instead.
  • Shareholders are reminded to claim any outstanding dividends.

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About Chobe Holdings Limited (CHOBE.bw)

Chobe Holdings Limited owns and operates eleven eco-tourism lodges and camps on leased land in Northern Botswana and the Caprivi Strip in Namibia through its subsidiaries. The holding company operates under two well-known hospitality brands; Desert & Delta Safaris and Ker & Downey Botswana. The eco-tourism group has a combined capacity of 314 beds and provides added services for its guests, such as transfers and private safari tours and game viewing. Safari Air is a wholly-owned subsidiary of Chobe Holdings Limited, which provides an air charter service to transport guests to and from its safari camps and lodges. The company also has interests in agricultural operations, property rental and reservation service.

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Giri

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