Tanzania: Swissport posts 78% rise in profit

Image result for swissport tanzaniaSwissport Tanzania has posted a net profit gain of 78 per cent thanks to increased traffic, foreign exchange, enhanced operational efficiency and strict cost control.

Swissport, the biggest ground handler in the country, announced the results yesterday saying last year’s net profit ballooned from 7.48bn/- of 2013 to 13.31bn/- of 2014.

The handler attributed the robust performance to increased traffic, use of wide body aircraft by airlines and more important -- enhanced operational efficiency and strict cost control.

“The prospect of the local aviation market indicates a slight increase in the number of flights while the volumes of cargo are expected to remain constant at best,” Swissport said in a statement.

During the year under review, the listed firm at DSE main market expenses increased by merely 4.0 per cent to 25.89b/- indicating a prudent cost control.

While total revenue in 2014 rose by 23 per cent to 44.58bn/-. Swissport share price went up by almost 6.0 per cent to yesterday since the start of the year to 5,410/- .

The share price envisages rising as dividend per stock rise by 73 per cent to make a total of 287/50. The board announced the final dividend of 6.42bn/- or 178/43 per share.

Last November an interim dividend of 3.92bn/- or 109/07 per share. On the future outlook, Swissport said they are optimistic this year’s performance will be favourable as the number of flights indicates a slight increase.

“√Čto cope with changing and demanding business environment several strategies and plans has been put in place, including continue investment in ground support equipment and human resources development,” Swissport said.

Among them to construction of import cargo which was partially commissioning last November and full migration expected to take place in this August.

“The current cargo terminal will be turned into a full fledge export facility,” the ground handlers said. The profitability rate, on other hand, has pushed up the earnings per share by 73 per cent to 359/36 in 2014 against 208/22 of 2013.

Swissport is an aviation services provider for ground handling and cargo operating at two major airports Julius Nyerere and Kilimanjaro international airport.

The company is a subsidiary of Swissport International and provides passenger services, ramp handling, executive aviation, cargo services and other aviation related services.
Source: Daily News, reported from Dar es Salaam, Tanzania
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