Cresta reduces COVID 19 induced losses
The silver lining is on the horizon for Cresta Marakanelo as the company slowly moves out of the woods due to easing of global travel restrictions and the increased vaccination rollout.
Cresta Marakanelo this week informed shareholders to expect reduced loss before tax on the company’s latest set of financial results.
“Shareholders are advised that the audited consolidated loss before tax of Cresta Marakanelo Limited for the year ended 31 December 2021, is estimated to have reduced by between 25 percent to 35 percent translating to between P18.2 million to P25.2 million compared to the loss before tax of P72.0 million reported for the year ended 31 December 2020,” states the company in a statement issued on the Botswana Stock Exchange ( BSE).
The company has attributed the improvement in performance to uninterrupted trading throughout the period under review, compared to the prior year, impacted by the closure of the hotels for normal operations.
In 2020, hotel operations were closed from the 2nd of April 2020 to 4th of June 2020, during the nationwide COVID- 19 pandemic lockdown.
Cresta’s audited financial statements for the year ended 31 December 2021, are expected to be released by 31 March 2022.
Despite reeling in tough operating conditions, punctuated by perennial losses over the past two years, Cresta Marakanelo is flexing its expansion arm.
Last month, the company announced that it has entered into a lease agreement with Tora Properties for a new hotel development in Mahalapye.
According to Cresta, the new hotel development will have 62 rooms and will complement the existing Cresta Mahalapye Hotel, which has 64 rooms.
Construction of the hotel extension is expected to commence during the second quarter of this year and be completed by June 2024.
However, Kgori Capital has warned that the hospitality sector remains in the doldrums.
“We have noted the uptick in advance bookings post the lifting of the State of Public Emergency ( SoPE) and roll- out of the vaccination programme - a positive indicator that the reopening of the sector is gaining traction, albeit from a very low base,” said, Kgori Capital Portfolio Manager, Tshegofatso Tlhong.
Tlhong further said that despite the green- shoots, the uncertainties facing the industry remain.