BHC profits up seven-fold
Mbongeni Mguni | Tuesday December 12, 2023 11:34
In a notice to the Botswana Stock Exchange, the Corporation noted that the improved performance was powered by rental revenues, which rose by P30 million to P169 million. The rental revenues were in turn supported by a P29 million subsidy from government received during the period.
The BHC secured approval to annually hike its rental to market levels from government in 2020, but the increases for 2023 and 2024 were suspended to help Batswana recover from COVID-19’s financial impact.
According to the results, sales revenue, which is one of the Corporation’s major revenue streams, increased year-on-year by 52% from P5 million to P8 million, with the BHC realising an average profit margin on sales of 28%.
On the cost side of business, total operating expenses increased by eight percent from P158 million to P171 million year-on-year, while repairs and maintenance expenses decreased by 29% to P22 million.
This was due to delays in implementation of planned maintenance activities during the review period compared to the prior year.