Swissport revenue, profit surge in H1

DAR ES SALAAM: SWISSPORT Tanzania Plc, a premier provider of ground handling services for the aviation sector, has delivered impressive financial results for the first half of this year, showcasing substantial revenue growth and enhanced profitability.

For the six months ending June Swissport Tanzania’s total revenue surged by 17 per cent, to 22bn/- up from 18.9bn/- in a similar period last year driven by increased business activity.

Notably, the company, a subsidiary of Swissport International, managed to contain costs, with operating expenses rising by 12 per cent to 18.5bn/- from 16.5bn/-.

The company’s successful cost control initiatives led to a substantial 50 per cent rise in operating profit, which advanced from 2.4bn/- to 3.6bn/-.

The company’s bottom line also experienced significant growth.

Profit before tax soared by 60 per cent to 3.2bn/- from 2.0bn/- in the previous year, a strong performance attributed to the higher revenue and effective management of operating expenses.

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Profit after tax surged by 85 per cent to 2.4bn/- up from 1.3bn/- last year.

The surge in profit translated into a remarkable 76 per cent increase in earnings per share from 38.3/- to 67.29/-, showing that the company managed to deliver more earnings for each share owned which may lead to increased investor confidence and potentially a higher stock price.

A key highlight is the company’s improved cash position.

Net cash from operating activities grew by 33 per cent from 3.9bn/- to 5.2bn/-, reflecting strong cash generation capabilities.

Additionally, there was a turnaround in net cash and cash equivalents, which rose to 1.6bn/- reversing a prior decrease of 2.1bn/- showing enhanced cash management and improved liquidity.

Swissport Tanzania’s balance sheet also strengthened, with total assets increasing by 9.0 per cent to 45.6bn/-.

Retained earnings grew by 12.5 per cent to 35.9bn/- indicating the company’s ability to reinvest in its business and generate value for shareholders.

Analysts and industry experts have attributed the company’s stellar performance to a combination of factors, including increased air travel demand, effective cost management and strategic business decisions.

The strong financial results position Swissport as a leading player in the ground handling services sector in Tanzania.

“The strong H1 performance is a positive indicator of the country’s aviation industry’s growth and its potential to contribute to the national economy,” said Leonard Mwanga, a Dar es Salaam based analyst.

The company’s success highlights the importance of a conducive business environment for private sector growth and job creation, he said.