NWR records N$46m net profit

Source: The Namibian
Author: Tracy Tafirenyika

Namibia Wildlife Resorts (NWR) has recorded a net profit margin of N$46 million and a clean audit for the year 2022 to 2023.

The profit is generated from accommodation revenue, NamLeisure memberships, tuition fees, food and beverage revenue, conference fees, deposits forfeited, game drives and general income.

NWR's revenue increased by 32% from N$294 million in 2022 to N$387 million in 2023.

The overall bottom line improved by 231% from a loss of N$35 million in 2022 to a record profit of N$46 million in 2023.

NWR managing director Mathias Ngwangwama says despite increasing inflation and fuel costs, expenses during the year under review increased by only 7%, mainly driven by increased spending on repairs, renovations and maintenance of the company's facilities.

"NWR continued to make good progress on its strategic value drivers of occupancy growth, revenue, expense management, profitability and improvements on the balance sheet.

"The solid financial performance in 2023 and ever-improving profit and balance sheet metrics demonstrate our commitment to our national mandate of providing tourism-related services in national parks and being an important government arm through which the national tourism objectives are to be met, in line with NWR's founding act," Ngwangwama says.

He says the company's financial performance continued to show resilience in 2023, as it fully settled long-term loans.

"The company attained a long-term debt-free status. We demonstrated that it is possible to achieve positive results in the public enterprise domain," he says.

MOU AGREEMENT

NWR and the Namibia Public Workers Union also announced the signing of aagreement aimed at improving the salary structure and housing allowance for employees within the bargaining unit.

All employees in job grades A1 to D3 who are currently below the minimum salary scale will be aligned to the new minimum percentile of the new salary scale.

The adjustment will commence in the 2023 financial year, and continue through the 2025/2026 financial year.

In 2021, NWR chairperson Leonard Iipumbu said during the 2019/2020 financial year, the decimation of the regional and international tourism industry by lockdowns and travel restrictions was the main reason NWR suffered a massive loss of about N$174 million.

"During the financial year 2019/20, we faced our greatest challenges as an organisation. The significant milestone of our first-ever profit of N$22 million since the establishment of the organisation and other financial gains made in 2018/2019 were wiped out due to Covid-19. However, to sustain its operations, which resulted in it not reducing its employees' salaries, except for its board's allowances and senior management salaries, NWR needed to be innovative to survive," he said.