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Acsa posts strong financial results with R472m profit in 2023/24

6 Sep 2024

Airports Company South Africa (Acsa) has reported strong financial results for the 2023/24 financial year, recording an after-tax profit of R472m. This marks a significant improvement from the previous year, driven by a 16% rise in revenue to R7bn and a 51% increase in earnings before interest, tax, depreciation, and amortisation (EBITDA) to R2.9bn, despite a challenging global economic environment.

Source: 4045 via Freepik

The company prudently contained the total operating expenditure with the return to normal operating levels, increasing by 13% to R4.1bn (2022/23: R3.6bn). The primary contributors to the increase in operating expenditure were maintenance,
security, utilities, cleaning and employee costs.

Employee expenditure increased to R1.6bn (2022/23: R1.2bn). This is due to progress in filling vacancies created by the Staff Cost Reduction Programme, introduced in 2020, and the restoration of some employee rewards and benefits.

Credit losses and investment portfolio gains

Credit losses on trade receivables were significantly lower, and the Group's investment property portfolio benefited from fair value gains. These factors positively contributed to the first after-tax profit of R472 million since the 2020 financial year,
compared to a loss of R466m in 2022/23.

Aeronautical revenue improved by 21% to R3.6bn (FY2022/23: R3.0bn). The 8% increase in aircraft movements, 16% increase in 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 R3.4bn (2022/23: R3.1bn).

The bulk of this income was derived from retail activities (R1.1bn) and property rentals (R924m).

Strategic shifts and long-term sustainability

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.

Capital expenditure was limited to airport maintenance, refurbishments and rehabilitation, and efficiency and technology-related projects. A total of R568m (FY2022/23: R422m) was spent on those projects.

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.