Blantyre hotels swings to K3.3bn profit as finance income offsets tough market

Blantyre Hotels Plc (BHL) has posted a profit after tax of K3.3 billion for the half-year ended 30 June 2025, a turnaround from the K781 million loss registered during the same period in 2024.

Unaudited interim results, signed by board chairperson Vizenge Kumwenda, show that revenue rose 16% to K4.1 billion.

However, rising costs put pressure on operations, with cost of sales jumping 59% to K1.8 billion, reflecting higher food and beverage prices and loyalty program expenses.

Selling and administrative expenses also grew by 27%, largely on account of staff costs, marketing and management fees.

At the operating level, the company reported a negative consolidated EBITDA of K23.9 million, while the standalone entity achieved K120 million—down sharply from K561 million last year, mainly due to weaker occupancy in a challenging economic climate.

Despite these pressures, BHL’s bottom line benefited from strong finance income of K5.7 billion, generated from proceeds of its rights issue designated for the Lilongwe Hotel Project.

This offset finance costs of K845 million and underpinned the group’s return to profitability.

The board noted that subsidiary Oasis Hospitality Limited, which is yet to commence operations, pushed up administrative expenses, slightly reducing the consolidated result compared to the parent company.

Looking ahead, BHL cited persistent inflation, forex and fuel shortages, and political uncertainty after the general elections as key risks weighing on travel and hotel occupancy. Still, the company remains confident about long-term growth, highlighting steady progress on its flagship expansion—Protea Hotel Lilongwe Ryalls—which remains on track for completion in the first half of 2026 despite forex-related delays.

Given the current performance, the board resolved not to declare an interim dividend.

The financial statements were approved on 26 September 2025.