Strong duty-free business boosts Tourvest revenue

Nicole Mezzasalma

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The company’s retail revenue was up by 22% despite a “disappointing” performance in its Virgin Atlantic contract

Tourvest has announced a 20% rise in revenue to R951m ($123.3m) for the six months to December 2007. Profits grew by 12% to R67.8m ($8.8m), while operating income increased by 20% to R119m ($15.4m) compared with the previous corresponding period. Tourvest said the results were achieved because of a “solid performance by most of its operations”, including travel-retail.

The company’s Retail Merchandising division, which includes Tourvest Duty Free, registered an increase of 22% in revenue to R582m ($75.5m) in the period, but operating income was down by 1% to R50m ($6.5m). Tourvest CEO Tommy Edmond said: “The duty-free business traded strongly on its African routes for the first six months. This performance was negated by a disappointing performance on the Virgin [Atlantic] contract. Remedial steps have been taken which are showing the necessary results.”

Edmond added: “The current political upheaval in Kenya is having a serious impact on our East African operations and the losses they are likely to suffer in the second half of the year will wipe out the good performance of the tour operator’s business in the first. We’ve already cut back on staff and reduced salaries there. These businesses contributed 9% to the operating income to December 2007.”