Cresta Marakanelo bounces back from losses
Pauline Dikuelo | Tuesday October 4, 2022 06:00
The group attributed the improvement to increased occupancies and cost reduction measures implemented, some of which will continue for the long term.
Commenting on the group’s unaudited consolidated financial results for the six months ended June 30, managing director (MD), Mokwena Morulane said tourism and hospitality sectors experienced a surge in the rebound momentum in 2022, and Cresta was no exception.
According to the MD, the group returned to profitability as COVID-19 restrictions such as curfews and travel restrictions were removed.
“International tour operator arrivals continue to rise steadily at our key tourism properties, while local travel has also been steadily rising both for corporates and individuals resulting in a significant increase in occupancies across all the company’s hotels,” he said.
However, the first quarter’s performance was low in line with the seasonality of the business but was an improvement from the previous year as during the same time last year.
The second quarter saw a rise in the performance of the business when compared to the first quarter, contributing 55% of the revenue generated for the six months ended on June 30.
The business enjoyed a steady month-on-month increase in revenues from January to June 2022.
Revenue for the period under review was P164.9 million, and 77% higher than the same period last year while earnings before interest, tax, and depreciation achieved during the period was a profit of P40.2 million, an improvement on the prior year’s EBITDA generated of P0.4 million.
Moving forward, the MD said the group will continue to implement its yielding strategy to ensure it remains competitive, while also leveraging technology and digitalisation to optimise operations, service provision, and cost-effectiveness.
“Execution of expansion projects as a critical path to success for the year is a top priority, together with the refurbishment of the existing properties in the portfolio.
The focus on cash generation continues as this will be key in funding the various projects in the pipeline,” he said.
Cresta Marakanelo is the country’s largest hotel group and its ability to survive the pandemic’s impact on the tourism sector has been read as an indicator of the industry’s overall health.