Hotel chain Sunbird Tourism Limited has reported a six percent revenue drop to K3.9 billion in the year ended December 31 2011 from last yearâ€™s K4.2 billion.
The Malawi Stock Exchange (MSE)-listed groupâ€™s revenue has been affected by a 51 percent drop in occupancies from 58 percent last year blamed on challenging macroeconomic environment which led to reduced business and less room inventory because of the refurbishment which completed in 2011.
During the year, according to financial results published on Monday, the groupâ€™s profit after-tax dipped 54 percent to K158 million from K347 million in 2010.
â€œAdministration and other expenses at K2.7 billion were 67 percent of revenue compared to 61 percent in 2010. The 2011 ratio worsened because of reduced revenue. The increase from K2.6 billion in 2010 to K2.7 billion in 2011, however, represented an increase of only four percent,â€ read the statement accompanying the results jointly signed by chairperson Leornard Chikadya and director R. Nkhoma.
Going forward, Sunbird hopes that the new administration of President Joyce Banda will address issues concerning the countryâ€™s macroeconomy and donor support.
â€œHowever, it is expected that the year 2012 will be very challenging for the group due to the ongoing economic challenges being faced by the country. The above notwithstanding, the board and management are optimistic about the prospects for 2012 bearing in mind that the company will trade at full capacity with a refurbished product,â€ said the statement.
The group said having considered the operating results for 2011, the interim dividend of K20 million already paid during the year will be proposed to be the only dividend paid for the year 2011.
Establishments under Sunbird hotels are; Sunbird Mount Soche in Blantyre, Sunbird Capital and Lilongwe in the Capital City, Sunbird Livingstonia Beach hotel in Salima, Nkopola Lodge in Mangochi and Sunbird Mzuzu Hotel in Mzuzu.