Sunbird Tourism Plc has reported a substantial increase in profit, rising to K5.3 billion from the previous year's K3.1 billion.

Chairman Vilipo Munthali attributes this impressive performance to effective cost containment measures despite disruptions in the supply chain due to the geopolitical conflicts in Ukraine and Russia and the devaluation of the local currency.

In an interview with Corporate Link Africa, Munthali highlighted the company's successful cost management strategies in the face of increased costs for imported supplies, driven up by the devaluation.

He also noted a significant improvement in occupancy rates, which increased from below 40% to approximately 56-57%, nearing pre-pandemic levels.

"Our recent performance up to June confirms that we are really getting out of the woods and back to pre-pandemic levels," Munthali stated.

Shareholder Concerns on Corporate Governance and Auditor Appointments

The company faced concerns from shareholders regarding the appointment of Deloitte as new auditors, with some questioning if corporate governance guidelines were fully adhered to.

Munthali reassured stakeholders that all procedures were followed meticulously by a dedicated board committee, emphasizing the long and rigorous process involved in selecting auditors, which started eight to nine months ago.

He expressed confidence in the chosen auditors, acknowledging that the concerns raised were specific to particular events that occurred after the initial selection process.

Stock Availability on the Malawi Stock Exchange

Another significant issue raised by shareholders was the availability of more shares on the Malawi Stock Exchange.

Munthali pointed out that this matter primarily lies with the shareholders themselves, especially those requesting the government to offload shares.

He encouraged shareholders to engage in discussions directly with each other, emphasizing that buying or selling shares is a personal decision and should not involve the board, which represents the interests of all shareholders.

Impact of Rising Water Levels

Munthali also addressed concerns about the impact of rising water levels on the company's properties, particularly those along the shores of the lake.

He noted that while some infrastructure, especially beach areas and certain walls, was damaged, the residential units remained largely unaffected due to their compliance with regulatory height requirements.

"Our business was not negatively impacted to a significant degree, which is reflected in our half-year results," Munthali assured.

Sunbird Tourism Plc's robust financial performance, strategic responses to shareholder concerns, and resilience in the face of environmental challenges position the company well for continued growth and stability in the coming years.