Sunbird profit up307% to K3.1bn
Sunbird Tourism plc has registered a 307 percent profit after tax jump to K3.1 billion driven by improved revenue, published data shows.
During the previous year, the Malawi Stock Exchange-listed hotel chain registered a profit of K749 million.
In its summary of audited financial statement for the year ended December 31 2022 jointly signed by its board chairperson Vilipo Munthali and director Moureen Mbeye, the hotel chain said its marketing strategies and positioning has played a pivotal role in driving the activities in both rooms and catering segments of the business.
Reads the statement in part: “Local and international tourism industry saw a strong recovery from the impact of Covid-19 in 2022. At local level, the lakeshore ban for meetings and conferences posed a risk to the growth and performance of the industry.
“Notwithstanding this risk, a positive trajectory in the overall increase of travel was maintained, leading to increased demand for hospitality services.”
The firm said the board remained resilient in positioning the company for revenue growth and cost management as such, the company’s profitability significantly improved, despite inflationary pressure exacerbated by the turbulent macro-economic environment.
During the year under review, total revenue grew by 55 percent to K25.7 billion on account of increased occupancy to 48 percent from 36 percent achieved in the prior year and growth in catering revenue by 49 percent from the prior year.
Finance costs, on the other hand, increased by 69 percent to K2.1 billion from the prior year due to increase in interest rates and discontinuing capitalisation of borrowing costs as related projects were completed.
Looking forward, the firm said it will continue monitoring the economic environment which remains volatile, with high inflation, persistent shortage of foreign currency, and intermittent power supply, and reposition the business accordingly.
Earlier, Malawi Tourism Council (MTC), a grouping of tourism operators, said it is worrisome that the industry has not grown and observed that other than the Covid-19 pandemic which dealt the industry a heavy blow, the country has not done much to promote tourism.
Meanwhile, the company declared and paid an interim dividend of K131 million representing K0.50 per share.
In 2021, there were no dividends payouts.
Apart from Sunbird Lilongwe, Livingstonia Beach, Nkopola Lodge and Ku Chawe, the hotel chain also has Sunbird Capital in Lilongwe, Sunbird Mount Soche in Blantyre and Sunbird Mzuzu.
It also has Sunbird Waterfront in Salima and Sunbird Chintheche in Nkhata Bay.
