Southern Sun (SSU) 1H24 – Results Snapshot

Diluted HEPS 17.6cps (-24.5% y-y).
Net turnover increased by 12.5% y-y to R2 790m. Rooms revenue increased by 28.7% y-y to R1 858m. Food and beverage revenue increased by 38.2% y-y to R730m.
OPM decreased by 650bps to 16.5%.
Expenses increased by 21.9% y-y while expenses-to-sales increased from 77.0% to 83.5%.
No dividend.
Cash generated from operating activities down 31.7% y-y to R450m.
Occupancy rate improved from 46.0% to 56.3%, aided by more normalised demand from local and international travellers and strong demand for conferencing and events.
Average room rate increased by 11.4% y-y to R1 297.
The group will continue to pursue its stated strategy of reducing debt levels while continuing to allocate capital to key properties in their portfolio so that they remain best-in-class. Gross debt reduced by 28.6% to R1 994m over the current year.