Zimbabwean hospitality group, African Sun Limited recorded a 32% rise in revenues to US$68.5 million for the fiscal year to December 31, 2018 from US$51.82 million in the prior comparable period.
Management attributed the growth to “a 7-percentage points (13%) increase in occupancy from 52% last year to 59%.”
African Sun’s revenue growth was also driven by 17% growth in average daily rate (“ADR”) from US$93 recorded last year to US$109 as the hotels continued to align domestic rates to the implied exchange rate between US$ and RTGS dollar.
“Occupancy growth was driven by a strong performance from all our source markets with room nights sold for domestic, international and regional increasing by 12%, 14% and 7% respectively,” said the group in a statement accompanying its results.
“The improvement in ADR and growth in occupancy spurred a 33% growth in rooms revenue per available room (“RevPAR”) from US$48 recorded last year to close at US$64. Total RevPAR also increased by 34% from US$86 last year to US$115 in 2018 responding to the 32% growth in revenue.”
EBITDA was recorded at US$17.13 million, which was 78% above last year in response to the growth in revenue and continued cost management
Net financing costs for the year amounted to US$0,66 million a 37 percent decrease from US$1.05 million due to loan repayments and lower average borrowing rates.
Profit for the year jumped 110% to US$10.14 million from $4,81 million previously.
The group earnings per share went up 111 percent to 1,18 cents from 0,56 cents.