Sun Limited Achieves 88% Recovery in Tourist Arrivals, Revenue Surpasses Pre-COVID Levels

Published On: September 18, 2023Company: Sun Limited (SUN.mu)
What was the critical aspect driving the improvement in Sun Limited's financial performance in FY23?
The significant recovery in the tourism industry led to an increase in market share and satisfactory financial performance for Sun Limited in FY23. The key markers included increased tourist arrivals, higher revenue, improved occupancy rates, a rise in Average Daily Rate (ADR), and a significant increase in Profit After Tax (PAT).

Financial Results Summary

  • The tourist arrivals for the financial year were 1.22 million, marking an 88% recovery from FY19 (1.38 million) and indicating a positive trend in the industry.
  • The Group managed to increase its market share and post satisfactory results due to the sustained recovery in the tourism industry.
  • The Group achieved a revenue of Rs 8.1 billion with a hotel occupancy rate of 74.0%, surpassing pre-COVID level (FY19: 72.4%).
  • Average Daily Rate (ADR) was up by 42% to Rs 13,359 compared to FY19 rate.
  • The EBITDA was Rs 2.4 billion, with an improved margin of 30.1% (FY19: 23.4%).
  • Net finance costs were significantly lower this year, mainly due to treasury gains, and Profit After Tax (PAT) was at Rs 1.5 billion, a sharp increase compared to Rs 200 million last year.
  • The Group revalued its freehold land and buildings, gaining Rs 971 million in Other Comprehensive Income.
  • Net debt reduced to Rs 3.4 billion, representing a reduction of Rs 1.8 billion, and free cash flow was at Rs 2.2 billion.
  • The gearing ratio improved to 22.7% from 34.8% the previous year.

Outlook

  • The financial results for the first quarter of FY24 are better than those of the same period in the previous year.
  • Second-quarter bookings are encouraging, indicating a progressive recovery of tourist arrivals and air seat capacity to pre-COVID levels.

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About Sun Limited (SUN.mu)

Sun Limited engages in the tourism sector of the leisure industry. The company is based in Ebene, the Republic of Mauritius, where it owns and operates six resorts in the Republic of Mauritius, one resort in the Republic of Maldives and also owns two in-house tour operators in France and South Africa. Sun Limited is listed on the Stock Exchange of Mauritius

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