Swissport Tanzania raises dividends as profits surge by 42 percent

Dar es Salaam. Shareholders of Swissport Tanzania Plc will enjoy a rise in dividends after the airport ground cargo handler saw its profits surge by 42 percent last year.

The company announced on May 16, 2024, that the final dividend approved by the board for the year ending December 2023 will amount to Sh1.84 billion.

This means the dividend per share has increased by 22 percent to Sh51.33, compared to Sh42 approved in 2022.

The Dar es Salaam Stock Exchange-listed firm’s profits increased to Sh3.69 billion in 2023 from Sh2.6 billion recorded in 2022, according to the statement.

“No interim dividend was declared or paid during the year,” the firm said in a statement signed by the board chairman, Mr Dirk Goovaerts.

The statement also indicates that revenue improved by seven percent, from Sh38.29 billion to Sh40.93 billion.

“The increase in revenue was attributed to a four percent rise in cargo volume handled as well as the impact of revenue increase strategies,” said Mr Goovaerts, adding that operating expenses remained in line with the growth of revenue and the general rise of price levels.

For 2024, the company expects a more upward trend in the ground handling and cargo handling business as Air Tanzania, the national carrier, and other airline customers are increasing frequencies and network coverage to capitalise on the growing air travel market.

“We are also foreseeing various government initiatives, including the 'Royal Tour, ongoing investment in Air Tanzania export promotions, and an improved business environment, to play an important role in fostering the number of air travellers, flight frequencies and volume of cargo,” he said.

Internally, Mr Goovaerts said the firm's strategies would implement several initiatives, including investments in human resources, technology, training, ground support equipment, and cargo infrastructure.

“A focus on product innovation, customer retention, and securing new profitable business opportunities will be paramount to sustaining and expanding operations in 2024,” he said.

Reading the sector budget on May 6, 2024, the Transport minister, Prof Makame Mbarawa, said cargo transported by air during the 2023/2024 fiscal year increased to 27,532 tonnes compared to 23,070.3 tonnes transported during the same period in the year 2022/23, representing an increase of 19.33 percent.

“The increase in transported cargo is due to the government's efforts to continue improving air transportation services, including the purchase of cargo aircraft, which began operating in June 2023,” the minister told the national assembly.

Prof Mbarawa said during that period By March 2024, the number of passengers travelling by air had increased to 5,080,920 compared to 4,105,375 passengers who used air transport during the same period of the year 2022/23, which is equivalent to an increase of 23.76 percent.