Tourism and hospitality industry player, Sunbird Hotels and Resorts, has reported a K5.3 billion profit after tax for the year ended December 31 2023, published summary audited financial statements have shown.
This represents a 72 percent increase in profit from K3 billion the company recorded in 2022.
According to the statement, total revenue grew by 36 percent to K34.8 billion on account of increased occupancy to 57 percent from 48 percent achieved in the prior year and growth in catering revenue by 31 percent from prior year.
It further says administrative expenses increased by 34 percent to K15.8 billion in line with increased business activities and high inflation.
Sunbird Chief Executive Officer Samson Mwale said the profitability was driven by the increase in revenue despite high production and operating costs that the company suffered due to high inflation, shortage of forex and high interest rates.
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“The environment was very challenging with inflation very high, especially the food inflation which drives the operating costs of hotels. Interest rates were also high and this affected demand for hotel products and services.
“Shortage of foreign currency and depreciation of the Kwacha had a negative impact on both the supply and cost of goods as well as demand for products and services,” Mwale said.
Sunbird Board Chairman Vilipo Munthali said they expect the brand to capitalise on this recovery and return the hotels’ occupancies to pre-pandemic levels of at least 60 percent by 2026.
“The economic environment still remains volatile, with high inflation, persistent shortage of foreign currency and intermittent power supply. The board will continue monitoring the economic environment and reposition the business accordingly.
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“Sunbird will continue to offer unrivalled guest experience through delivery of high-quality products and services in order to retain and grow its domestic and international client base,” Munthali said.
He added that the board has recommended payment of a final dividend of K1.495 billion, representing K5.70 per share, subject to shareholders’ approval at the forthcoming annual general meeting.
