Sunbird Tourism plc says its 2024 profit-after-tax increased by 102 percent to K10.6 billion courtesy of prudent cost management and revenue increase.
During the previous year, the hotel chain posted a profit of K5.3 billion.
In an interview on the sidelines of its annual general meeting on Tuesday in Blantyre, Sunbird Tourism plc chairperson Vilipo Munthali said the positive performance is despite foreign exchange shortage on the market and high cost of doing business.
He said: “The company has worked on several projects to rejuvenate our facilities. Most of them are old. At the same time, we are also trying to increase our offering by bringing new facilities, greenfield investments.
“Finance is a scarce resource and where it is made available to you, it costs an arm and a leg. And it’s quite challenging in that respect.”
During the year under review, the company invested about K27 billion in product improvement and expansion projects with conference centre and new rooms at Sunbird Livingstonia Beach in Salima, new rooms at Sunbird Nkopola Lodge in Mangochi and Sunbird Mzuzu as well as redevelopments at Sunbird Capital scheduled for completion in 2025.
Looking forward, Munthali said the change in US foreign aid policy is posing a risk of reduced business for the year 2025, adding that the economic environment is projected to remain volatile, while the upcoming election may offer opportunities to the hospitality industry, but with some interruptions that impact tourism, particularly in city hotels.
While commending the firm for the performance, Minority Shareholders Association of Listed Companies general secretary Frank Harawa said they are still hoping that Treasury will dilute its 71 percent stake in the hotel chain.
“They could have given us 21 percent to increase ownership of the company by indigenous Malawians and raise capital for its projects,” he said.
The Malawi Stock Exchange-listed Sunbird Tourism plc has 71 percent of its stake owned by government, with 14 percent owned by the public and 15 percent by Press Corporation plc.
Meanwhile, shareholders resolved to pay a final dividend of K2.7 billion representing K10.50 per share be paid, making a total of K3.4 billion representing K13 per share for 2024.
