Chobe Holdings Limited(Botswana) – HY2023 profit before tax increases by 467%

Chobe Holdings Limited (CHOBE.bw) HY2023 Interim Report

COMMENTARY

• Profit before tax increases by 467%.
• A 235% increase in number of bed nights sold.
• A 377% increase in revenue.
• Costs increase is in line with increased operations.
• Cash generated from operations BWP 125 million.

BASIS OF PREPARATION

The unaudited abridged financial statements for the half year ended 31st August 2022 have been prepared based on accounting policies which comply with International Financial Reporting Standards. The accounting policies applied are consistent with those of the annual financial statements for the year ended 28th February 2022, as described in those annual financial statements, save for new standards that became effective during this financial year.

FINANCIAL RESULTS

The loosening of travel restrictions associated with COVID-19 towards the end of the previous financial year has led to a significant improvement in the Group’s financial performance over the reporting period, with the half-year results matching those achieved during the comparable period immediately pre-pandemic.

This financial performance has been underpinned by steadily improving occupancies across the Group’s wildlife properties with our premium Ker & Downey Botswana brand showing the earliest signs of improvement and the most resilience going forward.

There is a broad mix of both new and deferred bookings travelling on our traditional pre-COVID-19 rates model with international travellers now making up the majority of our guests, however we continue to encourage Batswana to travel to our camps and lodges at much reduced rates.

Chobe believes that shareholder value is created through having motivated, trained, and empowered staff and that our people are our most important asset. Throughout COVID-19 we sought to protect both our people and business partners by utilizing accumulated resources on hand, in order that we emerge from the pandemic more resilient and stronger both within our work force and value chain. During the half-year the few staff who elected to resign over the past two years have been replaced, and all staff
benefited from a cost-of-living based salary increase in March.

Throughout the pandemic we continued to maintain all our assets and consequently as a Group were well placed to take full advantage of the tourism sector recovery.

Global and regional supply chain constraints have placed pressure on the Group’s operations, but these have been managed at the operational level with alternate suppliers and logistic solutions being found.

Chobe continues to play a significant role in the communities in which we operate and remains fully engaged with our partners.

FUTURE OUTLOOK

Bookings for the remainder of the financial year remain robust with the subsequent financial year showing similar resilience.

The residual supply chain constraints and the economic, political and health effects of the COVID-19 pandemic continue to impact the Group. The effects of uncertainty in Europe have yet to be seen, but may be consequential if the conflict in the Ukraine escalates.

The strength of the United States Dollar relative to other currencies will dampen demand from some of our source markets, although this is ameliorated by strong demand for travel generally and the support provided through the majority of the Group’s revenue being received in United States Dollars.

Inflation, particularly with respect to food and fuel, has increased expenses across the Group, but once again our United States Dollar revenue provides a level of protection.

The Group’s strong cash position provides us with the opportunity to take advantage of any expansion opportunities that may arise.

DIVIDENDS

In keeping with the Company’s dividend distribution policy no interim dividend has been declared in favour of a final year end declaration.

UNCLAIMED DIVIDENDS

The Directors wish to bring to the notice of shareholders that there are certain amounts of unclaimed dividends in the Company’s records. Shareholders are reminded to contact the Transfer Secretaries to claim their outstanding dividends.

By order of the Board of Directors

J K Gibson
Chief Executive Officer
27 October 2022