Cresta improves performance
Cresta Marakanelo is committed to continue implementing its yielding strategy to ensure it remains competitive, despite difficult trading conditions which led to 72 percent decline in profit during the first half of 2022. The Group profits declined to P9.4 million from P34,1 million last year. Cresta Marakanelo Limited Managing Director, Mokwena Morulane stated that the first quarter’s performance was low in line with the seasonality of the business but was an improvement from the previous year as during the same time last year. “The second quarter saw a rise in the performance of the business when compared to the first quarter, contributing 55 percent of the revenue generated for the six months ended 30 June 2022.” He said the business enjoyed a steady month- on- month increase in revenues from January to June 2022 while also leveraging on technology and digitalisation in order to optimise operations, service provision and cost effectiveness. The Group’s Profit Before Tax from continuing operations increased by 117 percent to P5.9 million, compared to a loss of P35.2million last year. “The main driver for the good performance was increased occupancies and the cost reduction measures implemented, some of which will be continued for the long term, even after the pandemic has been contained.“Revenue for the period was P164.9 million, 77 percent higher than the same period last year. Earnings before interest, tax, and depreciation ( EBITDA) achieved during the period was a profit of P40.2 million, an improvement on the prior year’s EBITDA generated of P0.4 million. Morulane stated that with the waning in strength of the negative effects caused by the COVID- 19 pandemic, the Tourism & Hospitality industry experienced a surge in the rebound momentum in 2022, and Cresta Marakanelo Limited was no exception. During the six months to 30 June 2022, as the ban on alcohol sales and various other COVID related restrictions such as the curfew and travel restrictions were removed, CML returned to profitability. Currently, international tour operator arrivals continue to rise steadily at key tourism properties, while local travel has also been steadily rising both for corporates and individuals resulting in a significant increase in occupancies across all the Company’s hotels. Morulane also highlighted that the focus on cash generation continues as this will be key in funding the various projects in the pipeline. “The Group will continue to implement its yielding strategy to ensure it remains competitive, while also leveraging on technology and digitalisation in order to optimise operations, service provision and cost effectiveness.”