SWISSPORT Tanzania’s net profit has increased 12 times, thanks to the recovery of the business after a deadly coronavirus pandemic that devastated the global aviation sector.
The country’s largest ground handling firm said in its financial statement yesterday that the profit increased from 0.174bn/- generated in the first half of last year to 2.152bn/- similar period this year.
The Swissport Tanzania Chairman, Mr Dirk Goovaerts, said total revenue went up 25 per cent from 14.242bn/- to 17.763bn/- while operating cost increased by 10 per cent to 15.202bn/-.
“The (profit] is attributed to significant business recovery from the impact of Covid-19 and continued cost-cutting measures…to sustain the profitability of the business,” Mr Goovaerts said.
The profitability level pushed earnings per share by 12 times to 59/78 six months to June from 4/83 of a similar period last year and envisaged to increase further as stable and solid operational to be sustained for the remainder of the year.
“The recovery of both ground handling and cargo services business has been consistent to the management expectations. It is therefore envisaged that stable and solid operational and financial performance will be sustained for the remainder of the year,” he noted.
Exodus Advisory Chief Executive Officer, Mr Ramadhan Kagwandi said Swissport controls a great market share that was affected by reduced international flight movements due to the pandemic, but with the opening of borders, the firm sees increased sales and reduced costs that spurred higher profitability.
“The 1,137 per cent increase in net profit is wonderful. This has been greatly attributed to the loosened situation of Covid-19,” Mr Kagwandi told ‘Daily News’ yesterday.
According to the Alpha Capital Financial Market Digest report, last week Swissport accounted for 25.4 per cent of the total turnover after a prearranged block transaction of 550,000 shares was executed at 1,800/- a share, which is a discount of 5.3 per cent from the last Friday’s market closing price. The closing price also went down 3.0 per cent to 1,900/-.
