Wilderness maintains profit growth
Keikantse Lesemela | Tuesday May 27, 2014 15:08
In a statement accompanying the results of the year ended February 28, 2014, Wilderness Holdings chairman Parks Tafa said revenue grew by 16 percent mainly driven by organic expansion of existing businesses, increased yield per bed nights and exchange rate gains due to depreciating local currencies.
“Revenue grew by 16 percent to P1.4 billion despite reduction in available bed nights to P210 million,” said Tafa.
The average exchange rate for the period was 11 percent weaker against the US dollar at P8.56 having the effect of increasing revenue in pula terms. However, the rand depreciated against the pula by eight percent to R1.20, causing the inverse effect of reducing revenue on translation of the South African operation to Botswana pula.
“The combination of the net currency movement contributed approximately six percent to the revenue growth,” Tafa said.
The group has also recorded a decrease in gross margin by one percent to 41.7 percent as a result of the change in sales mix with the lower margin independent product sales. This constituted 38.5 percent of total revenue compared with 37 percent in the corresponding period. For the period, nearly P81 million was reinvested in capital expenditure, including camp assets, technology and new camps.
Two new camps under the explorations brand were opened as well as the new Hoanib Skeleton Coast Camps in Namibia, which are scheduled for opening in August 2014.
The group has allocated P93 million in capital expenditure to maintain and develop new camps and other assets and to expand its earnings base. In the period, Wilderness says that all geographical segments reported an improved operational performance while other gains amounting to P17.2 million were realised including P14 million profit from the disposal of an associate and a property in Namibia together with a profit of P2.6 million on disposal of the Lusaka property.
Cash available increased by 80 percent to P251 million notwithstanding a decrease in average interest bearing debt of seven percent with an overall improvement in working capital. A final dividend for the year of 10thebe per share was declared by the board on May 21, 2014.
Wilderness owns and operates a network of 44 luxury safari camps that offer a total of 750 beds in five southern African countries. In addition, the company manages a further nine camps (offering 164 beds), in four countries. It also markets a further 16 camps (offering 262 beds), in two countries, under contract to their respective owners.