The owners of Sedia Hotel in Maun and Chobe Game Lodge in Kasane said revenue increased by a third to P543 million in the fiscal year ended February 2024, eclipsing both the 2023 gains and pre-COVID-19 revenue.
Chobe Holdings, the Botswana Stock Exchange-listed eco-tourism giant said in its financial year results that operating expenses rose to P366 million from P288 million in 2023, reflecting heightened operational activities and expansion.
Despite these costs, the company’s operating profit surged to P205 million, a 46.6 percent increase from P140 million the previous year. Total comprehensive profit also saw a notable rise, reaching P148.0 million compared to P105 million in 2023, marking a 41.6 percent jump.
Chobe Holdings’ asset portfolio expanded impressively, with non-current assets growing to P478 million from P382 million, and current assets increasing to P198 million from P169 million. This brought total assets to P676 million, up 16.2 percent from P550 million the previous year, the group said. On the liabilities side, non-current liabilities slightly decreased to P58 million from P60 million, while current liabilities rose to P155 million from P122 million, culminating in total liabilities of P213 million, up from P182 million.
Earnings per share also mirrored this positive trajectory, with basic and diluted earnings per share increasing to 168.64 thebe from 116.96 thebe.
In his report, CEO John Gibson attributed these stellar results to a combination of strong market demand and strategic marketing initiatives. “These extremely strong results, both in revenue and profit for the year, have built upon the improvements of the previous year and have significantly surpassed those reported prior to the COVID-19 pandemic. This is a result of strong demand from source markets, as well as effective marketing growing our agent base, improving yield and Revenue per Available Room (RevPAR) as well as occupancies,” Gibson explained.
The CEO highlighted the exceptional performance of Chobe’s hospitality brands, Desert & Delta Safaris and Ker & Downey Botswana, as key contributors to the company’s success. He emphasised the importance of harnessing talent at all levels and developing a highly capable team to leverage Chobe’s strong balance sheet for growth aligned with shareholders’ investment horizons.
Investment in marketing remains a strategic focus, with Chobe exploring new opportunities within traditional markets and globally. Gibson revealed plans to launch several new products in the coming year and announced the completion of negotiations to market and operate a premier lodge in Zambia.
Despite the positive financial performance, Chobe Holdings faced challenges stemming from global uncertainties. “Conflict in Europe and the Middle East has not had a discernible impact on forward reservations and forecast revenue. However, the inflationary effect of uncertainty and pressure on the supplies of fuel, imported materials, and essential foodstuffs has increased our costs,” Gibson noted.
Gibson closed by highlighting that, as the only ecotourism company listed on the Botswana Stock Exchange, Chobe Holdings continues to provide an important mechanism for citizens to invest in and benefit from Botswana’s tourism sector. The company remains committed to sustainable tourism practices, ensuring that its operations positively impact the environment and local communities.
