DAR ES SALAAM: SWISSPORT shareholders will be laughing all the way to the bank as dividend increases on the back of strong profit growth thanks to expanding air travel market.
The board announced a final dividend of 51/- per share for 2023, cumulating to 1.84bn/-, being a 21 per cent increase from 42/- announced for 2022.
“The board is delighted to announce the final dividend per issued and fully paid share. No interim dividend was declared and paid during the year,” said Chairman Dirk Goovaerts in a public statement.
The increase in the dividend is attributed to the company’s positive results for the fiscal year ended December 31, 2023.
Swissport’s net profit increased 42 per cent to 3.69bn/- until December 31 last year from 2.6bn/- registered in the preceding year, thanks to the growing air travel market.
Additionally, the country’s largest ground and cargo handling service provider’s total revenue climbed up by 7 per cent to 40.9bn/- from 38.2bn/- recorded in a similar period in a prior year.
“The increase in revenue was attributed to the rise of cargo volumes by 4.0 per cent and increased strategies implemented during the year,” he said.
Minister for Transport Prof Makame Mbarawa stressed that cargo transported by air increased by 19.33 per cent to 27,532 tonnes compared to 23,070 tonnes transported in a similar period in 2022/23.
“Increase in freight transported is based on the efforts of the government to improve services air travel including the purchase of cargo planes that started to provide services in June last year,” said Prof Mbarawa recently when tabling to the parliament his ministry’s budget estimates for 2024/25.
Additionally, the firm’s total operating expenses increased by 4.0 per cent to 35.0bn/- until the end of December from 33.8bn/- recorded in a similar period in a prior year.
Swissport Tanzania’s total assets according to the statement released show an increment of 1.0 per cent to 45.0bn/- from 44.5bn/- registered in 2022.
To ensure the sustainability of the business this year, the firm said it would improve the business environment to play an important role in fostering the number of air travellers, flight frequencies, and volume of cargo.
However, delivering safe operations coupled with investment in human resources, technology, training, ground support equipment, and cargo infrastructures remains a top priority.
