BHL profit down 69%
Malawi Stock Exchange-listed Blantyre Hotels Limited (BHL) plc, which owns Ryalls Hotel, has registered a 69 percent drop in profit for the six months’ period ended March 31 2020.
This is according to an interim financial statement the firm published on Wednesday.
The statement, signed by Blantyre Hotels Limited Chairperson Emily Makuta, shows that profit for the hospitality firm decreased to K545 million compared to K1.74 billion recorded during a similar period last year.
The report further indicates that hotels’ occupancy rate decreased by 41 percentage points to 11 percent in this period with the cost of sales also going down from K808 million to K340 million, representing a 58 percent drop.
This is attributed to the decline in business and cost containment measures being pursued as a strategy in managing performance challenges, with the Covid pandemic still posing a threat to business.
The firm further plans to continue focusing on the domestic market as the international market slowly opens up.
Notably, BHL registered a drop in profit during the six-month period to June from K1.99 billion to K1.74 billion.
Earlier this month, the Ministry of Health issued a directive to close the country’s borders and airports except for returning citizens and essential travellers.
Malawi Tourism Council Executive Director Richard Mdyetseni said in an earlier interview that this could hurt the tourism sector further.
Tourism is among sectors hard-hit by the pandemic as, in 2020 alone, over 300,000 people lost their jobs due to the impact of the pandemic.
