However, despite the 17.6% growth in top-line performance, Chobe’s operating profit declined, squeezed by rising operational costs that weighed on margins. Revenue gains were tempered by a decline in operating profit, driven by elevated operating costs. In its results statement published on the Botswana Stock Exchange (BSE), the company noted that "operating profit was lower than the prior year due to higher operational costs.” The increase in expenditure reflects broader inflationary trends, supply chain pressures, and continued investment in operational infrastructure to support future growth.
In February 2024, operating profit stood at P204.9 million compared to this year’s P197.6 million. Company executives in a results notice on the BSE shared that upgrades of some of their camps and salary increments and rationalisation across the group hampered profitability, mainly driven by revamp of some of their camps. "Despite strong revenue growth, profits have been negatively impacted by reduced foreign exchange gains reported, increased operating expenses resulting from revenue growth, groupwide salary rationalisations to ensure competitiveness, enhanced corporate social responsibility investments and higher depreciation and amortisation charges due to the complete reconstruction of Savute Safari Lodge and Kanana Camp, as well as significant upgrade work at Nxamaseri Island Lodge and Okuti Camp," executives said in a statement accompanying the results. Chobe Holdings operates a portfolio of luxury safari lodges and travel services through its subsidiaries in Botswana and the region. The group’s recovery has been buoyed by strong demand for high-end eco-tourism experiences, particularly from international markets. This has been further supported by efforts to improve marketing reach and product diversification. In line with its strategic expansion, the group revealed plans to broaden its regional footprint. “The group is in the process of launching a number of new products, including the development of a premier lodge in Zambia,” the company said in its statement.
