- Eco-tourism outfit expects P185 to P190m in PBT
- Strong recovery in tourism post-COVID boosts profits
Leading eco-tourism company Chobe Holdings has returned to profitability with a bang after a string of unsatisfactory results in the past years characterised by COVID-19 restrictions.
The outbreak of the pandemic in Botswana in early April 2020 resulted in immense revenue losses emanating from accommodation cancellations as tourists were forced to cease travel. Last week, the BSE-listed blue chip hospitality and eco-tourism outfit has indicated that it has returned to its days of glory, forecasting a strong surge in profit before tax (PBT).
The company announced through a cautionary statement published on the BSE that its PBT for the year ended 28 February 2022 is likely to be between 357 perccent – 367 percent or P185 million and P190 million higher than profits reported for the comparative period ended 28 February 2021 that amounted to a loss of P51.8 million, primarily attributed to COVID-19. According to the Chobe Holdings Board of Directors, the Group will be publishing its audited consolidated summarised financial results for the year ended 28 February 2023 before 31 May 2023.
This will include commentary on the drivers for the improved performance. “Accordingly, shareholders and investors are advised to exercise caution when dealing in the company’s securities until the results are formally published,” said the cautionary statement. After the COVID-19 pandemic, which impacted the tourism sector primarily due to the travel bans to contain the virus, Chobe Holdings has been recording constant recovery. In its six months results period ended August 2022, the company indicated that its pre-tax profits rose to P103.3 million from a loss of P28.2 the previous corresponding period.
According to the directors’ commentaries accompanying the released interim results at the time, the turnaround in Chobes’ fortunes was largely due to the loosening of the travel restrictions associated with COVID-19 towards the end of the previous financial year. The directors also explained that the financial performance had been underpinned by steadily improving occupancies across the Group’s wildlife properties, with the premium Ker and Downey Botswana brand showing the earliest signs of improvement and the most resilience going forward.
