Sunbird posts K2.5 billion profit

Sunbird posts K2.5 billion profit

Post was last updated: June 22, 2020

Malawi Stock Exchange (MSE)-listed hospitality giant, Sunbird on Friday disclosed that it posted an after-tax profit of K2.595 billion in 2019 up from K2.562 billion in 2018.

Sunbird Board Chairperson, Phillip Madinga, said this during the firm’s virtual annual general meeting.

Madinga said the performance demonstrates the firm’s resiliency and is attributed to prudent cost management, business process reengineering as well as a relatively improved and stable economic environment.

Sunbird board resolved to pay a final dividend of K131 million or 50 tambala per share bringing the total dividend for the year to K262 million or K1 per share which was similar to the dividend given in 2018.

Madinga observed that the board expects some volatility in key macroeconomic variables due to the negative economic impact of Covid-19.

He was, however, quick to note that the authorities are expected to continue efforts to entrench macroeconomic stability and focus on sustaining the positive economic gains achieved over the past few years.

This, according to Madinga, combined with tight monetary policy framework may contain inflation and reduce fiscal dominance.

“The Covid-19 pandemic that has now spread all over the world has affected the travel patterns for both corporate and leisure and is resulting in significant reduction of travel in the country, depressing the tourism sector.

“This has also resulted in some countries slowing down activities and complete shutdown for some countries like South Africa. These are countries that Malawi has a lot of economic activities with and may affect the supply of critical items to the country and specifically to the company,” Madinga said.

Sunbird Chief Executive Officer, Yusuf Olela, said the hospitality chain has remained resilient and maintained its position as a market leader despite increased competition and challenging operating environment hampered by an extended political impasse.

He said Sunbird remains committed to delivering unrivalled guest experience to ensure that it remains a preferred brand in the hospitality industry.

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