Sunbird Tourism posts K5.3 billion profit increase
Board Chairman Vilipo Munthali announced the results Friday during the company's 36th annual general meeting in Blantyre.
BLANTYRE, Malawi— Sunbird Tourism plc, a company listed on the Malawi Stock Exchange, reported a profit after tax of K5.3 billion for the 2023 financial year, a 72% increase from 3.1 billion kwacha in 2022, writes Steven Godfrey Mkweteza.
Board Chairman Vilipo Munthali announced the results Friday during the company's 36th annual general meeting in Blantyre.
The company's share price rose from 92.06 kwacha in 2022 to 191.07 kwacha at the end of 2023. Munthali attributed this growth to increased occupancy rates reaching pre-pandemic levels.
"The profitability was driven by increased revenue and cost containment, despite escalating production and operating costs due to high inflation, forex shortages, and high interest rates," Munthali said.
Total revenue grew by 36% to 34.8 billion kwacha in 2023, up from 26.7 billion kwacha in 2022.
Occupancy rates increased to 57% from 48% the previous year, while catering revenue grew by 31%.
Shareholders approved a total dividend of 2.019 billion kwacha for 2023, equivalent to 7.70 kwacha per share.
Munthali expressed optimism about further recovery in 2024, citing the ongoing construction of a 7 billion kwacha conference center at Sunbird Livingstonia as a factor that will "immensely change the guests' experience."
Frank Harawa, secretary general for the Minority Shareholders of Listed Companies (MISALICO), commended the company's performance but urged Sunbird to increase the availability of its shares on the stock market.