HOME Tourism Sunbird blames devaluation on its 2012 results

Sunbird blames devaluation on its 2012 results

0
1145

Sunbird Tourism Limited says it expects the 49 percent devaluation of the kwacha to impact on the company’s bottom line this year.

Sunbird board chairperson Leonnard Chikadya told The Daily Times on the sidelines of the company’s annual general meeting in Blantyre on Thursday that Sunbird might just manage to hold on to the similar performance it managed in 2011.

In 2011, the Malawi Stock Exchange (MSE)-listed hospitality giant saw its after-tax profits shrinking by 54 percent from K347 million in 2010 to K158 million as business slowed down due to, among other things, a chronic fuel shortages which resulted in many cancellations of confirmed hotel bookings and conferences.

The acute shortage of foreign currency experienced last year is also believed to have compromised the standard profit margins as procurements of supplies were from uneconomical local suppliers at high prices.

“Now we have a different animal to talk about, the devaluation of the local currency by almost 49 percent. It has changed the whole structure of the costs for guest amenities. Importations of guest amenities that are put in the rooms are now 50 percent expensive. Not to talk about the cost of production of food. It has gone up significantly.

“As if that is not enough, we have seen the increase in the cost of fuel which has forced most of the travelling public to scratch their heads twice before they can travel to various places, including some of our resorts.

“While 2011 was bad enough, if you take into consideration the bad economic fundamentals which continued to half of this year, for the remaining half of this year we are bound to continue with, what I would call below average performance because of the need to correct these economic factors,” said Chikadya.

He noted that the hotel chain expects 2014 to be the best year.

“I expect 2014 to be the best year. It has always been the case that when you have a general election in that year, the whole industry benefits a lot,” said Chikadya.

During the meeting, shareholders approved a recommendation by directors that no final dividend be declared after declaring an interim dividend of K20 million representing seven tambala per share.

According to Chikadya, when one makes an investment in a company, it is not only about the dividend, but also about how the total worth of the company is growing.

“Yes, the company may not have the cash to pay dividends, but the net worth of the business is always growing,” he said.

In 2011, Sunbird completed refurbishments of Sunbird Capital and Sunbird Mount Soche as well as the construction of The Lakeshore International Conference Centre (LICC) at Sunbird Nkopola Lodge.

The total cost of these three major projects is K2.5 billion of which K2 billion was borrowed from commercial banks.

Upcoming Events

Mombasa Republic

Thu, 11 Apr 2019 @ Chanco - Community Limited in partnership with NDI presents "MOMBASA REPUBLIC" concert. Made possible with Funding from NDI under the Malawi Youth for Elections 2019 Campaign. Its free of charge...

Don Tarz Birthday Bash

Sun, 14 Apr 2019 @ Mtandire (California Club) - Dance hall artist Don Tarz will be celebrating his birthday along side other names like Blasto, Njuchi Zitatu, Jah Ryno, Kufewa Acrobatics and many more....See You there!!!

Mulipo? Music Show

Sun, 21 Apr 2019 @ Don Bosco Youth Centre - Money Way Presents : Mulipo? Music Show, performances by Wikise, Seven O More, Tidacase, Eso Slique, MazzOpenga and more!!! See you There!!!

The Winter Splash Carnival

Fri, 26 Apr 2019 @ Blue Elephant - The Winter Splash Carnival, Achina Dj Ronnie and Dj Trick Kuzabutsa Moto Pa 26 April ku Blue Elephant. Ma Dj Okwiya Awa!!! Lets be There Fam.!!!!!

Young Innovative Entrepreneurs Symposium

Sat, 27 Apr 2019 @ La Caverna - Support the youth for a cause... Buy your tickets to Young Innovative Entrepreneurs' first ever Symposium while they last. See You There.... !!!

Unlimited Worship Concert

Sat, 27 Apr 2019 @ Hotel Victoria - Unlimited Worship Concert, I worship album Launch on 27th April, 2019. Shekinah supported by Faith Mussa and other worship Ministries : Allan Chirwa, PS. Ruth Mandha and Minister Ken & ...

L City Gang Launch

Sun, 28 Apr 2019 @ Midland Tower - L City Gang Launch, there will be Activities like Photoshoot, Singing, Dancing and Performances by Kisco, A Crucks, Amazon Gang, Zotto, Rappercenta, Dayo and Joe Santiago. SEE YOU THERE !!!!

Eya Zikiyenda Concert

Sat, 04 May 2019 @ 247 Entertainment Centre - 247 Entertainment Centre Presents " Eye Zikuyenda Concert" performances by malceba, Saint, Jants, Andy Music, Stich Fray, Jay Jay Cee, Black Nina, Heptic, Hilco, Smacks, Sir Patrics An...

CoolPro International Club 1st Anniversary

Sat, 04 May 2019 @ Malosa - CoolPro International Club 1st Anniversary, K3000 entry,Castel beer will be available at affordable price. CoolPro International Club, Zomba, Malosa. SEE YOU THERE!!!!

Zidatha CD Launch

Sun, 01 Sep 2019 @ Lilongwe Community Hall - Zidatha CD Launch By Mlakatuli Joseph Madzedze. See you There!!!
Yapita ijaGovt orders Petroda to lease out filling stations
YotsatiraJB calls for efficiency in civil service

PALIBE NDEMANGA

ZIMENE MUMAKONDA

Please enter your comment!
Please enter your name here