Umodzi Holdings posts MK1.2bn first-quarter profit

LILONGWE-(MaraviPost)-Umodzi Holdings Limited, the government-owned company that operates Umodzi Park Resorts in Lilongwe, has reported a profit after tax of MK1.2 billion for the first quarter of the 2026/27 financial year, up 14.5 percent from MK1.0 billion recorded during the same period last year.

Unaudited results for the quarter ended June 30, 2026, show revenue increased by 50 percent to K8.1 billion from K5.4 billion, driven by stronger performance in rooms, food and beverages, conferences and events. Gross profit rose by 40 percent to K4.9 billion, while EBITDA increased by 19 percent to K2.2 billion.

Umodzi Holdings Chief Executive Officer Kamlepo Kalua attributed the growth to increased engagement with corporate and government clients, as well as several high-profile events hosted during the quarter.

However, operating costs increased by 53 percent to K2.9 billion, while overheads rose by 61 percent to K2.3 billion, largely due to higher utility and maintenance costs.

Central to this strategy is a deliberate focus on human capital motivation, with Kalua’s leadership anchored on inclusion and an open-door policy that management says has strengthened staff engagement across the business.

Kalua said the results reflect the early impact of the company’s turnaround strategy, which focuses on operational efficiency, staff development, service quality and stronger partnerships with government and private-sector clients.

The performance comes shortly after President Hotel was named Malawi’s Leading Hotel at the World Travel Awards in Zanzibar on August 28, 2026.

Management expects the operating environment to remain challenging but remains optimistic that Umodzi Park’s diversified hospitality and conferencing business will support sustainable growth throughout the 2026/27 financial year.

Umodzi Holdings Limited owns Umodzi Park Resort, comprising the Presidential Villas, the President Hotel, the first five-star hotel in Malawi, Bingu wa Mutharika International Convention Centre, the largest in the land, and associated hospitality facilities at the Bush Bar and outside catering services at meetings and events.