Hospitality giant African Sun Limited revenue for the year ended December 2017 closed at US$51.83 million a 19% growth from US$43.6 million reported during the same period last year.
According to the group chairperson, Hebert Nkala, the growth was spurred by an 8-percentage points increase in occupancy from 44% last year to 52% for the year under review.
“The growth was spurred by an 8-percentage points increase in occupancy from 44% last year to 52% for the year under review.
“The increase in occupancy was recorded in all three market segments, with the international market posting the highest growth of 29%, domestic 17% and regional 3%.
“The 17% growth in the domestic market was partly due to the flexible pricing system implemented during the year. Average daily rate (“ADR”) was maintained at US$93 as the focus was on driving occupancies, despite a 1% increase in the international and regional ADR.
“The rate strategy and growth in occupancy spurred a 17% surge in rooms revenue per available room (“RevPAR”) from US$41 recorded last year to US$48,” said Nkala.
He added that net financing costs for the year increased by 39% from US$0.75 million reported last year.
“Total RevPAR also increased by 18% from US$73 last year to US$86 in 2017 responding to the 19% growth in revenue. EBITDA grew 53% to US$8.37 million in response to increased revenue and continued cost management.
“Net financing costs for the year amounted to US$1.05 million, a 39% increase from US$0.75 million reported last year.
“Profit for the year from continuing operations was US$4.82 million, marginally up from US$4.81 million reported last year. Excluding non-operating income (profit from disposal of a subsidiary), profit for the year increased by 68% to US$4.82 million, from US$2.87 million achieved last year,” said Nkala.
Meanwhile, in view of the improved performance, the Board declared a final dividend of US$600 655 being US$0.000697 per share (0.0697 US cents per share) for the year ended 31 December 2017.
