Sunbird Tourism records K749.4m profit in 2021

Malawi Stock Exchange (MSE)-listed hospitality group, Sunbird Tourism plc has posted  an after-tax-profit of K749.4 million, largely attributed to the easing travel restrictions and economic recovery.

In its published financial statements, Sunbird Tourism plc said its profit-after-tax has jumped from a loss of K1.2 billion during the same period in 2020.

The statement said the results were on account of improved business environment and cost control management strategies that the company implemented during the year.

Reads in part the statement co-signed by chairperson George Partridge and director Vilipo Munthali: “The company’s marketing strategies and positioning have played a pivotal role in driving the activities in both rooms and catering segments of the business.

“The corporate individual market segment which constituted 57 percent of total room nights sold continues to be the anchor segment for the business, followed by corporate groups market segment at 27 percent.”

The statement shows that total revenues for the hotel chain  rose to K16.6 billion in 2021, representing a 23 percent increase from K13.5 billion reported in the previous year due to improved occupancy.

On the other hand, the company’s occupancy improved to 36 percent during the year under review from 32 percent attained in the prior year.

Reacting to the performance, Minority Shareholders Association of Malawi secretary general Frank Harawa described the development as positive.

“It is our hope that the trend continues and as the country continues administering the vaccine, soon the Covid-19 issue will be history and things will normalise, including trade by the most affected companies,” he said.

Meanwhile, the hotel chain says it expects the country’s economy to continue on its recovery path during the year following the reduction of cases which has resulted in easing of the Covid-19 -19 pandemic restrictions worldwide.