- Achieved record profit before tax of P202m
- Reports cash and cash equivalents totalling P141m
- Points to demand from source markets and own marketing
GAZETTE REPORTER
Chobe Holdings Limited, an ecotourism outfit listed on the Botswana Stock Exchange (BSE), has announced stellar financial results for the year ending 29 February 2024.
Buoyed by robust demand from source markets and effective marketing strategies, the company has reported revenue and profit figures that not only surpassed the previous year’s improvements but also significantly exceeded pre-pandemic levels.
Hospitality brands
“These improvements have been felt across the business with the performance of our hospitality brands, Desert & Delta Safaris and Ker & Downey Botswana, being particularly strong,” said the CEO, John Gibson, in the company’s audited abridged results.
Chobe Holdings recorded a 28 percent increase in occupancy levels, a 32 percent increase in revenue, and achieved a record profit before tax of P202 million.
The company also reported cash and cash equivalents totalling P141 million.
Gibson emphasised the company’s commitment to leveraging its strong balance sheet for growth, in line with shareholders’ investment horizons.
Highly capable team
“Chobe continues to harness talent at all levels, developing a highly capable team to aggressively leverage our strong balance sheet to drive growth,” he said.
Chobe has maintained a proactive stance on marketing, exploring opportunities within traditional markets and beyond.
“We continue to invest in our marketing effort, exploring new opportunities within our historic markets as well as wider opportunities globally,” Gibson noted.
Premier lodge in Zambia
The company plans to launch several new products and has completed negotiations to market and operate a premier lodge in Zambia.
Despite global uncertainties, including conflicts in Europe and the Middle East, Chobe’s forward reservations and forecast revenue remain unaffected. However, inflation and supply chain issues have increased operational costs.
“The inflationary effect of uncertainty and pressure on the supplies of fuel, imported material and essential foodstuff has increased our costs,” Gibson said.
International supply chains
“Chobe’s operations have faced further challenges from the significant delays and uncertainties in international supply chains. Wider conflict remains a risk.”
Chobe Holdings has a dividend policy to pay dividends covered at least twice by attributable fully taxed earnings, subject to the group’s liquidity requirements.
Gibson stressed the importance of prudent liquidity management. “Advanced Travel Receipts should be segmented and not paid as dividends,” he stated.
Strong cash position
The company’s strong cash position allows for expansion opportunities funded by internally generated cash flows.
Gibson highlighted Chobe’s unique position as the only ecotourism company listed on the Botswana Stock Exchange, providing a mechanism for citizens to invest in and benefit from Botswana’s tourism sector.
In line with the company’s dividend distribution policy and the solvency requirements of the Companies Act, Chobe’s Board of Directors declared a net dividend of 80 thebe per share.
Unclaimed dividends
This dividend will be payable to shareholders registered at the close of business on 13 June 2024, with an ex-dividend date of 11 June 2024, and a payment date set for June 25, 2024.
“The directors wish to bring to the notice of shareholders that there are certain amounts of unclaimed dividends in the company’s records,” Gibson added.
“Shareholders are reminded to contact the transfer secretaries to claim their outstanding dividend.”
Strategic agility
Chobe Holdings’ recent performance underscores the company’s resilience and strategic agility in navigating market challenges and capitalizing on growth opportunities.
The record financial results and proactive expansion plans highlight Chobe’s leadership in the ecotourism sector and its contribution to Botswana’s economy.
Chobe Holdings Limited owns and operates 11 eco-tourism lodges and camps on leased land in Northern Botswana and the Caprivi Strip in Namibia through its subsidiaries.
The holding company operates under two well-known hospitality brands, Desert & Delta Safaris and Ker & Downey Botswana.