Sunbird grows revenue by 30%
Sunbird Tourism PLC has grown its revenues by 30 percent to K15.7 from K12.1 billion in 2015. Profit after tax increased by 31 percent to K1.336 billion from K1.022 billion in 2015.
Chairman of Sunbird, Phillip Madinga, has since attributed the strong performance to management’s keen focus on key strategic initiatives.
Madinga was speaking during the hospitality chain’s recent Annual General Meeting that took place on June 29 at Mount Soche Hotel in Blantyre.
But Madinga said although tourism presents great potential for the country’s economic growth, employment opportunities and contribution to poverty reduction, there are still a number of challenges to the full realisation of the potential benefits.
“In 2016, Sunbird paid financing costs of K669 million to providers of debt capital. It is obvious that this level of financing costs erodes distributable profits that would have otherwise been paid as dividends to equity shareholders or reinvested in the company if the company had an optimal capital structure.
“The sector is also facing power supply issues, water supply issues and shortage of skilled labour although the government is working tirelessly to sort out these issues,” he said.
Looking forward, Madinga said the economic outlook looks promising on the back of continued reduction in inflation rate, stability of the kwacha, and a favourable agricultural season.
“The economy is poised to be strong and businesses are expected to do better,” he said.
Sunbird has over 600 shareholders. The main shareholders are the Malawi Government with 71 percent stake, Noel Hayes has 16.49 percent stake and members of the public own 12.51 percent.
