Southern Sun (SSU) H2 2024 earnings summary

Executive summary

• Achieved record profitability for the year ended 31 March 2024, with revenue up 19% to R6.0 billion and Ebitdar up 32% to R1.9 billion, driven by strong performance in the Western Cape and disciplined cost control.

• Adjusted headline earnings per share rose 88% to 56.4 cents, and a maiden dividend of 12.5 cents per share was declared.

• Net debt reduced to R1.0 billion, with a leverage ratio of 0.7x Ebitda and interest cover of 7.2x.

• Share buybacks of R617 million completed, reducing shares in issue by almost 10%.

Financial highlights

• Rooms revenue grew 23% to R4.1 billion, supported by a 9% increase in average room rate and a 7.1pp increase in occupancy to 58.6%.

• Food and beverage revenue increased 15% to R1.5 billion; property rental income rose 17% to R229 million.

• Free cash flow of R970 million generated, with R298 million spent on maintenance capex.

• Attributable profit for the year was R856 million (2023: R1 billion, which included significant one-off items).

• Ebitdar margin improved to 31% from 28% (excluding prior year exceptional items).

Outlook and guidance

• Optimism for further recovery in occupancy and rates, especially in Gauteng and KwaZulu-Natal, as government and corporate travel rebounds.

• International demand remains strong, with potential upside from visa simplification and increased air capacity.

• Focus remains on operational efficiency, customer experience, and leveraging the frequentGuest programme.