Shangri-La Asia S07 has reported a net profit attributable to owners before non-operating items of US$129.0 million ($174.1 million) for the FY2023 ended Dec 31, 2023, reversing its loss of US$161.6 million in FY2022.
Including non-operating profit, earnings came to US$184.1 million for the full-year period, a swing of US$342.6 million compared to its loss of US$158.5 in the previous financial year.
Earnings per share came to 5.17 US cents for FY2023 compared to the loss per share of 4.44 US cents in FY2022.
Revenue rose 46.5% y-o-y to US$2.14 billion in FY2023 with the hotel business recovering strongly. Mainland China and Hong Kong reopened their borders in early 2023, while hotels in the rest of the world continued to see strong travel demand, says the company.
“Our bottom-line returned to pre-pandemic levels while margins surpassed pre-pandemic levels despite challenging macro conditions including inflation and rising interest rates due in part to cost and efficiency improvements during the pandemic,” said Shangri-La in its results statement.
The company also announced that it will resume the payment of dividends, proposing a final dividend of 15 HK cents per share for FY2023.
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Looking ahead, the company says it will continue to revamp its existing portfolio to better serve customers’ needs, especially in the leisure segment.
Shangri-La will also grow its footprint through management contracts, particularly in Mainland China where the company opened JEN Shenzhen Qianhai by Shangri-La in 2023 and Shangri-La Nanshan, Shenzhen in early 2024.
“With global international travel and China domestic travel returning to normalised levels, we are cautiously optimistic on the return of Chinese outbound travel as the next growth catalyst as more markets continue to roll out favourable policies and promotions, including the introduction of visa-free travel for Chinese tourists, as done by the governments of Singapore, Malaysia and Thailand,” says the company.
Shares in Shangri-La closed unchanged at HK$5.25 on March 22.
