Southern Sun (SSU) H1 2026 earnings summary

Executive summary

• Achieved 5% income growth to R3.1bn in F'26 H1, driven by strong South African operations up 8% to R3.0bn, partially offset by a 29% decline in offshore revenue due to Paradise Sun's temporary closure and weaker trading in Maputo and Tanzania.

• Group Ebitdar was stable at R818m, with a margin of 26% (2024: 28%), reflecting cost pressures and offshore losses.

• Adjusted headline earnings per share (HEPS) remained steady at 24.9c; adjusted headline earnings at R334m.

• No interim dividend declared, consistent with prior year.

Financial highlights

• Group income increased 5% year-over-year to R3.1bn; South African income up 8% to R3.0bn; offshore income down 29% to R147m.

• Food and beverage revenue grew 6% to R807m; property rental income up 4% to R119m; other revenue up 14% to R162m.

• Operating expenses rose 7%, mainly due to higher IT, utilities, and channel costs.

• Net interest-bearing debt increased to R481m at 30 September 2025, up from R266m at year-end.

• Free cash flow was R51m–R52m, down from R154m, due to increased capital expenditure and dividend payments.

Outlook and guidance

• Paradise Sun's relaunch is performing strongly, with high occupancy and ARR expected to continue into H2.

• Major events in South Africa, including the G20 conference and sporting events, are expected to support peak summer trading.

• October 2025 saw record occupancy of 73.3% and 18% revenue growth, with Ebitdar up 27% year-over-year.

• Medium-term recovery in occupancies to long-term averages is anticipated, aided by economic growth policies and South Africa's removal from the FATF grey list.

• Interest rates remain high, constraining consumer and investor confidence.