TPS Eastern Africa Limited Reports 45% Increase in Turnover and 56% Growth in Pre-Tax Profit in HY2023 Interim Report

Published On: August 30, 2023Company: TPS Eastern Africa (Serena) Limited (TPSE.ke)
What is the key takeaway from TPS Eastern Africa (Serena) Limited's HY2023 Interim Report?
The key takeaway from TPS Eastern Africa (Serena) Limited's HY2023 Interim Report is a strong performance during the first half of 2023 with a 45% increase in turnover and a 56% increase in pre-tax profit compared to the same period in the previous year. Challenges exist due to the weakening of the Kenya Shilling against the US Dollar and various macroeconomic factors, but the company anticipates continued growth and an optimistic outlook for 2023.

Summary

  • TPS Eastern Africa (Serena) Limited reported solid growth and business improvement during the first half of 2023, bolstered by increasing confidence in the foreign leisure and corporate market segments across the East African region.
  • The Group recorded a 45% increase in turnover to stand at KShs. 3.8 billion during the first half of 2023, marking a significant improvement from the same period in 2022.
  • Profit before unrealised exchange loss, interest, depreciation, results of associates and taxation recorded a 56% growth compared to the previous year, reaching KShs. 795 million.
  • Despite a weakening Kenya Shilling against the US Dollar leading to higher debt interest costs, the Company generates adequate revenues in US Dollars to cover due loan commitments in 2023.
  • The Company successfully navigated through a range of challenges, including political demonstrations in Kenya, inflationary pressures, rising energy costs, and a fluctuating macroeconomic environment.
  • The report also noted a strong booking trend for Serena Kenya and Serena Tanzania for the Safari peak season from June to October 2023, adding optimism for exceeding pre-pandemic performance levels.
  • However, the report cautioned that despite encouraging performances, it remains essential to proactively manage cost-efficiency, supply chain logistics, and cash flow due to the seasonal nature of the tourism industry and ongoing economic and geopolitical challenges.
  • The Board of Directors does not recommend the declaration of an interim dividend.

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About TPS Eastern Africa (Serena) Limited (TPSE.ke)

TPS Eastern Africa (Serena) Limited owns and operates hotels and lodges in Kenya for the business and tourist sectors. The company owns and operates 35 hotels as well as a selection of resorts, safari guest lodges, safari camps, palaces and forts located in strategic sites in Kenya, Tanzania, Zanzibar, Rwanda, Uganda, Mozambique, Pakistan, Afghanistan and Tajikistan. Subsidiary companies include TPS (Kenya) Limited which owns Nairobi Serena Hotel, Amboseli Serena Safari Lodge, Mara Serena Safari Lodge and Kilaguni Serena Lodge; TPS (Zanzibar) Limited which owns Zanzibar Serena Hotel; TPS (Tanzania) Limited which owns Kirawira Serena Camp, Lake Manyara Serena Safari Lodge, Serena Mivumo River Lodge and Selous Serena Camp; and TPS (Uganda) Limited. Other properties owned and managed by TPS Eastern Africa (Serena) Limited include Lake Victoria Serena Resort in Uganda and Polana Serena Hotel in Mozambique. TPS Eastern Africa (Serena) Limited is listed on the Nairobi Securities Exchange

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