- Turnover dropped by 5%
- operating profit dipped by 58%
- Loss stood at ZMW4.4 million
Harare – Lusaka Stock Exchange listed hotel entity, Taj Pamodzi Hotel succumbed to the severity of the hostile economic environment as it posted a negative performance for the year ended 31 March 2020.
In a results publication, the hotel said total turnover decreased by 5% from ZMW83 million registered in the previous year to ZMW78.7 million in 2020 while operating profit dipped by 58% to ZMW6.3 million from ZMW15.3 million in the prior year.
Consequently, Pamodzi registered a loss after tax for the year of ZMW4.4 million against a profit of ZMW2.4 million in the prior year.
The drop in both turnover and operating profit was attributed to the decrease in room segment income and food and beverage segment income as compared to the previous year.
The hotel said the room segment income decreased due to a decrease in lower number of delegations arriving in the hotel over the last year especially in the last quarter due to the worldwide pandemic which saw less travel.
Pamodzi however added that Mice business performed higher than previous years which contributed positively to the overall revenue of the hotel.
On the outlook, the company remains optimistic post the pandemic and expects a slow recovery of the industry worldwide.
“Management will remain focused on cost control and productivity improvements. We aim to drive growth through our operations, Pamodzi has embarked on a strategy to maintain and enhance operational efficiency while remaining focused on delivering a high-quality service that is unrivalled on the Zambian market.”
Taj Pamodzi is a subsidiary of Tata Zambia Limited, an international automobile assembly and distributor company.
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