Malawi Stock Exchange-listed Blantyre Hotels Limited (BHL) has reported an improvement in its cost management owing to a higher percentage of revenue retained as gross profit.
The company’s profitability increased by 2.03 percentage points after its gross margin increased to 56.52 percent in 2023 compared to 54.55 percent in 2022.
According to an extract from its financial statement, the company’s revenue increased to K4.61 billion in 2023 from K3.37 billion the preceding year while its gross profit reached K2.60 billion from K1.86 billion. This increase in gross margin indicates that the hotel business became more efficient in generating gross profit from its revenue in 2023 compared to 2022.
However, the company incurred net finance charges of K929 million resulting in a loss of K793 million in 2023.
“The company revenue for the year was K4.6 billion, which was 37 percent higher than the revenue realised in prior year.
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“Hotel Occupancy averaged 48 percent in the year compared to 46 percent in 2022,” the statement reads.
It says the cost of sales increased by 34 percent from K1.5 billion to K2 billion in the period due to the increase in general price of goods coupled with the increase in volume of business.
“Selling and administration expenses increased by 40 percent with notable increases in staff costs, fees to management company and capital raising costs,” the statement reads.
BHL Chairperson Emily Makuta said the company would continue with its efforts to improve guest experience and service delivery through the relationship with Marriott International.
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“The company will also intensify its sales and marketing activities through the various digital platforms to strengthen the domestic segment in addition to the promotion of the Marriott Bonvoy rewards loyalty programme in the market. The board resolved not to pay a dividend due to the current performance,” Makuta said.
The company’s performance took a sharp turn after public gatherings and travel were restricted in 2020 due to the Covid pandemic.
