Shareholders of Swissport Tanzania are celebrating a significant financial boost following a 25% increase in dividends per share. The announcement was made at the company's Annual General Meeting (AGM) over the weekend, where the dividend was raised to 51 Tanzanian shillings per share for the past year, up from 41 shillings in 2022.
Swissport's Chief Executive Officer, Mr. Mrisho Yassin, attributed the dividend hike to a substantial rise in net profit, which soared to 3.6 billion shillings last year, compared to 2.6 billion shillings in 2022. This profit surge resulted in a total dividend payout of 1.8 billion shillings.
Mr. Yassin explained that the profit increase was driven by heightened aviation activities. "The number of flights increased, which in turn boosted the cargo volume handled by Swissport, while our operation costs remained stable," he told reporters on the sidelines of the AGM.
The CEO also noted that the growth in passenger numbers, particularly due to the expansion of Air Tanzania Corporation (ATCL), contributed to the increased flights. "We are also considering expanding our operations to Zanzibar’s Abeid Amani Karume International Airport and Mwanza International Airport," he added. Mr. Yassin highlighted the favorable business environment in the country as a significant factor in the company’s strong performance.
Shareholder Mr. Emmanuel Matunda expressed his satisfaction with the company’s performance over the past year. "I expect that the company will continue to grow due to the increasing number of tourists coming into the country," Mr. Matunda said optimistically.
Additionally, Swissport Tanzania reported improvements in key financial metrics. The return on assets (ROA) improved from 5.86% in 2022 to 8.20% last year, while the return on equity (ROE) increased from 8.36% to 11.07% over the same period.
Swissport Tanzania’s impressive financial results and strategic growth plans underscore its robust position in the aviation ground handling sector, promising continued benefits for its shareholders.
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