Sunbird Tourism Limited Reports 51.5% Occupancy and 45% Revenue Increase in HY2023 Interim Report

Published On: October 4, 2023Company: Sunbird Tourism Plc (SUNBRD.mw)
What major impact was noted in Sunbird Tourism Plc's HY2023 Interim Report despite initial challenges such as cyclone Freddy?
Despite the initial uncertainties and the impact of cyclone Freddy, Sunbird Tourism Plc managed to register strong performance in the first half of the year with a 51.5% occupancy rate and a 45% increase in revenue per available room compared to the previous year. Furthermore, the company's Profit after tax saw a dramatic rise of 296% from the previous year.

Key Insights from Sunbird Tourism Plc HY2023 Interim Report

  • The unaudited interim financial results indicate a successful first half of 2023 for Sunbird Tourism Plc despite significant challenges including cyclone Freddy.
  • The company reported a healthy occupancy of 51.5% and a 45% increase in revenue per available room compared to the previous year.
  • Total revenue as at June 2023 amounted to K14.8 billion, marking a 47% increase from the previous year’s first half revenue of K10.0 billion.
  • The corporate segment was the primary contributor, accounting for 82% of room nights, and is expected to remain the key driver for business in the second half of the year.

Operating Costs and Finance Costs

  • Administrative and other expenses were up by 37% due to increased business volumes and inflation. However, management continues to monitor expenses to ensure they align with business levels.
  • Finance costs decreased by 4% to K942.9 million due to the repayment of corporate bonds and other loans.

Profit After Tax and Dividend

  • The company reported a Profit after tax of K1.6 billion, a significant increase of 296% from the previous year’s profit of K400 million.
  • An interim dividend of K524 million or K2.00 per share has been proposed for the year 2023, an increase from the prior year’s K131 million or K0.50 per share.

Outlook

  • The company expects to continue its recovery trajectory considering the projected stability of the economic environment.
  • Several product improvement initiatives are in place to help bolster performance, such as refurbishment of rooms and upgrade of arrival experience at various branches.
  • However, high levels of inflation driven by a shortage of foreign currency and increasing food prices are potential risks that could affect business performance.

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About Sunbird Tourism Limited (SUNBRD.mw)

Sunbird Tourism Limited is the largest hospitality chain in Malawi with seven hotels and resorts located in premier destinations, providing upmarket accommodation for business and leisure travellers. Sunbird Hotels also have meeting and conference facilities, catering for corporate and private functions. Sunbird Tourism Limited has four city hotels in three regions in Malawi, two lakeside resorts on Lake Malawi and a safari resort which is home to the Big 5. Hotels and resorts in its portfolio include Sunbird Capital Hotel, Sunbird Mount Soche, Sunbird Nkopola Lodge, Sunbird Mzuzu, Sunbird Livingstonia Beach, Sunbird Ku Chawe on the Zomba Plateau, Sunbird Lilongwe and Sunbird Thawale in the Majete Game Reserve. Restaurants and bars managed by Sunbird Tourism Limited include Vincent’s Restaurant and Bar, Picasso’s Brasserie and Grill and Pablo’s Lounge Bar. Sunbird Tourism Limited also operates a catering service division operating in three segments: airline, institutional and event catering. Sunbird Tourism Limited is listed on the Malawi Stock Exchange

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Giri

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