Swissport profit up, announces dividend

Swissport Tanzania has posted a net profit increase of 21 per cent after a significant business recovery from the impact of Covid-19.

The country’s largest ground and cargo handling services provider said in its financial statement its net profit jumped to 2.61bn/- last year from 2.15bn/- from the preceding year also thanks to increased Air Tanzania Company Limited (ATCL) operations.

Swissport Tanzania Chairman Dirk Goovaerts said in the statement on Tuesday that both ground and cargo handling business segments have fully recovered from the impact of Covid-19.

“Airlines are operating at their normal capacity and have plans to increase frequencies,” Mr Goovaerts said adding:

“Planned growth of ATCL is also expected to stir further growth of the aviation market. Cargo volumes are increasing while import volumes are expected to remain constant and stable.”

Swissport shares on Dar es Salaam Stock Exchange, appreciated by 36.3 per cent to 1,640/- from 1,200/- year to date, with an abrupt gain beginning late last month.

Additionally, the Swissport board announced a final dividend 42/- per share cumulating to 1.51bn/- for last year.

“…No interim dividend was declared and paid during the year [2022],” the chairman said, “the final dividend will be paid out on or about June 21”.

The flight frequencies increased by 53 per cent and volume of cargo handled increased by 20 per cent.

The frequencies and cargo increase pushed up revenue by 25 per cent to 38.29bn/- last year from 30.67bn/- the previous year.

“These developments coupled with the improved business environment over the past years are expected to increase flight frequencies and volume of cargo in 2023 and consequently, the financial performance will improve,” the chairman said.

The firm total operating expenses increased by 21 per cent to 33.81bn/- from the recorded 28.03bn/- of the prior year attributed to staff receivables that rose by 54 per cent.

To ensure the sustainability of the business this year, the firm said they would improve the quality of service offered to airlines, maintain operational and cost efficiencies, and invest in human resources, technology, training, ground support equipment, and cargo infrastructures.

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