Swissport profits increase by over 60 per cent

Mr Temu

Swissport Tanzania Ltd, an airport ground handling and cargo services, yesterday announced profit before taxes of 10.2bn/- for year ended 2011, an increase of 62 per cent.

The company which is listed at Dar es Salaam Stock Exchange (DSE) saw its annual turnover increase from 20bn/- in 2010 to 28bn/- during the same year. 

The company's Managing Director, Gaudence Temu, told a press conference in Dar es Salaam after the Board of Directors meeting that the impressive results were due to increased passenger and cargo flights recorded during the year.

"The impressive performance was mostly driven by 24 per cent increase in handling flights, 17 per cent increase of cargo volumes as well as financial discipline which is part of our corporate culture," Mr Temu said. 

According to him, about 11,106 flights were handled during the year compared to 8,623 flights in 2010 and passengers increased from 509,000 in 2010 to 592,000 with cargo soaring to 27,605 tonnes from 23,582 in 2010.

Mr Temu said the cargo volume was dominated by imports of equipment and machinery for prospecting and exploration of oil and gas while malaria drugs and telecommunication equipment had their fair share as well.

Swissport staff handling cargoes in Dar

The MD announced dividend of 3.4bn/- for its shareholders for the second half of 2011 with Swissport workers pocketing a total of 700m/- in bonuses. Total dividend for the whole year is expected to be 5.6bn/-.

He said every shareholder will get 95.25/- per share an increase from 62.27/- they pocketed in the first half of the year. About 12,000 Tanzanians own 49 per cent of stake in the company including social security funds. The remaining 51 per cent is owned by Swissport International.

However the MD said economic growth and business boom is being curtailed by lack of infrastructure at local airports. "There is no doubt that the increase in traffic and cargo volumes is compounding infrastructure inadequacy especially at Julius Nyerere International Airport.

"We have therefore continued to press the government to address these challenges urgently otherwise further growth of aviation sector in the country will be curtailed," Mr Temu explained.

Source: The Daily News,www.dailynews.co.tz, reported by Faraja Mgwabati

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