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Saturday, June 25, 2022

Sunbird Posts MK 749 Million Profit  

By Steven Godfrey Mkweteza, Contributor

Despite the prevailing devastating impact of Covid -19 in the hospitality and travel industry, Sunbird Tourism Plc has announced that it has posted a profit after tax of MK 749 million during the 2021 as compared to loss of Mk 1.2 billion reported in 2020.

Board Director for the hospitality and travels company, Vilipo Munthali, said this recently  during the company’s 34th annual general meeting (AGM) held in Blantyre.

Munthali attributed the turn around to the increased business volumes in 2021 as compared to 2020 when Covid-19 effects was at the pick.

He said aggressive global vaccination campaign which led to relaxation of travel restrictions as well as an uptake in travel confidence from International arrivals and a resilience on domestic market driven by relaxation in Covid -9 measures at local level, was key in an improved trading environment for the industry, hence, the performance.

“Generally, our lakeshore resorts performed well unlike the city hotels because they were driven by conferences. Therefore, when government banned large gatherings and international travels due to Covid-19 affected our performance in this sector,” said Munthali

He further forecasted a further growth if businesses in the years to come as the result of strategic instruments that have been put in place to increase profits.

“We will make sure that we continue our efforts to improve service delivery, enhance guest experience, undertake product improvements, and also intensify sales and marketing activities,” he said

Munthali added that the company intends to refurbish all rooms, construct a magnificent lake side view restaurant and an eco-lodge in Majete game reserve in order to retain and grow its client base both in domestic as well as the international market sectors.

However, the director laid down reports of poor business performance in the lakeshore areas due to the recent ban of government activities in the areas, saying the company’s facilities in the lakeshore areas were well established to attract more customers.

Commenting on the minority shareholders demand for the government to reduce its stake in the tourism group, Munthali said the fears were unfounded because government do not run day to day affairs of the company.

“We run our affairs professionally as a listed company and government does not control our operations as a majority shareholder,” he said

In a separate interview, Joe Maere, a minority shareholder of the company expressed satisfaction with the performance of the group.

“It is a very good result considering that the company has not been registering growth for the past three years.

This means we are on a good recovery path even though dividends will not be declared to us again this year, ” he said

Sunbird Tourism Plc (Sunbird) is a leading operator in the hospitality industry in the country and is publicly quoted enterprise, listed on the Malawi stock exchange in August 2002.

As of December 2021, government of Malawi through the dormant Malawi Development Corporation (MDC), is the major shareholder at 71%, press corporation Plc owns 15% and members of the public 14%.

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