- Loss before tax narrowed by 32%to US$1.2 million
- Occupancy rates reached 47% with international markets contributing 24% of room nights
- Average daily room rate increased to US$108 from US$94
Harare- African Sun Limited (ASUN), the largest hotel group, has started the 2024 fiscal year with a narrower loss position, down 32% year-over-year.
In its latest trading update, ASUN reported a loss before tax of US$1.2 million for the quarter, an improvement from the US$1.8 million loss recorded in the same period last year.
The loss-making position was however, driven by a 30% increase in operating costs, which rose from US$8.3 million to US$10.8 million, offsetting the growth in revenues which reached us$11 million compared to us$7.8 million previously.
Finance costs less liability also surged 200% to $437,000 from $135,000, further eroding the company's income.
On a positive note, ASUN's occupancy rates grew by 21%, reaching pre-pandemic levels of 47% compared to 39% a year earlier. International markets accounted for 24% of the room nights sold. As a result, the average daily room rate increased to $108 from $94.
The group maintained a strong liquidity position, with a cash and cash equivalents balance of US$8.6 million at the end of the quarter. It remained debt-free during the period, but is now seeking suitable debt funding opportunities in local and regional markets to refurbish and modernize its hotel portfolio.
Following the end of Q1 2024, the Group declared a final dividend of $350,000 for the 2023 financial year.
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