Johannesburg – Airports Company South Africa (ACSA) has reported a “robust and pleasing financial performance” for the 2023/24 financial year, posting an impressive after-tax profit of R472 million.
The airport company said Thursday: “Despite operating in a relatively challenging global economic environment, ACSA’s revenue increased by 16% to R7.0 billion from the R6.0 billion reported in the previous financial year.”
Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 51% to R2.9 billion (2022/23: R1.9 billion).
“The company prudently contained the total operating expenditure with the return to normal operating levels, increasing by 13% to R4.1 billion (2022/23: R3.6 billion),” ACSA, led by CEO Mpumi Mpofu, said in a statement.
“The primary contributors to the increase in operating expenditure were maintenance, security, utilities, cleaning, and employee costs.”
Employee expenditure increased to R1.6 billion (2022/23: R1.2 billion).
“This is due to progress in filling vacancies created by the Staff Cost Reduction Programme, introduced in 2020, and restoration of some employee rewards and benefits,” the statement said.
Credit losses on trade receivables were significantly lower, and the Group’s investment property portfolio benefited from fair value gains.
ACSA said these factors positively contributed to the first after-tax profit of R472 million since the 2020 financial year, compared to a loss of R466 million in 2022/23.
“Confidential Aeronautical revenue improved by 21% to R3.6 billion (FY2022/23: R3.0 billion),” ACSA said.
“The 8% increase in aircraft movements, 16% increase in number of departing passengers and 4.4% inflationary tariff increase contributed to this performance.
“Similarly, non-aeronautical revenue performance benefited from the improved trading conditions, increasing by 12% to R3.4 billion (2022/23: R3.1 billion).”
ACSA said the bulk of this income was derived from retail activities (R1.1 billion) and property rentals (R924 million).
“The transition from the Recover and Sustain Strategy to the Innovate, Grow, and Sustain Strategy, as well as the revised Financial Plan, provided a structured management approach and a means of resourcing the business in a way that has enabled the Group to secure and safeguard its long-term sustainability,” ACSA said.
“Capital expenditure was limited to airport maintenance, refurbishments and rehabilitation, and efficiency and technology-related projects.
“A total of R568 million (FY2022/23: R422 million) was spent on those projects.”
PERFORMANCE HEADLINES:
- Revenue up 16%, from R6 billion in 2022/23 to R7 billion in 2023/24
- Profit before tax R1.4 billion, a significant improvement from a loss of R246 million in 2022/23
- Profit after tax R472 million, recovering from a loss of R466 million in 2022/23
- Gearing decreases to 17% from 24%
The annual financial statements have been audited by the group’s auditors, Auditor General South Africa, who expressed an unqualified opinion thereon.
The annual financial statements, including the audit opinion and key audit matters, can be found on the group’s website at https://www.airports.co.za/business/investor relations/financial-information
