| Thu 15 Sep 2022, 14:40 | | Audited Financial Results For The Year Ended 31 March 2022 - Airports Company South Africa |
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Audited Financial Results For The Year Ended 31 March 2022 - Airports Company South Africa
Airports Company South Africa SOC Limited
(Incorporated in the Republic of South Africa)
(Registration number 1993/004149/30)
Issuer Code: BIACSA
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2022
PERFORMANCE HEADLINES:
• Revenue up 81%, from R2.2 billion to R3.9 billion
• ACSA reports a loss of R1 billion, down from R2.6 billion loss in 2020/21
• Gearing increases to 26% from 23%
• Recover and Sustain strategy implemented with positive results
KEMPTON PARK, Aviation Park, 15 September 2022 – Noteholders are hereby notified that
Airports Company South Africa (ACSA) has today reported its audited financial results for the year
to 31 March 2022, which largely reflect a difficult operating environment for ACSA, following the
COVID-19 pandemic and last’ year’s July civil unrest.
Revenue was R3.9 billion for the 12-month period, up by 81% from the R2.2 billion reported in the
previous financial year. The company narrowed its losses to R1 billion, from a loss of R2.6 billion in
2020/21. This was the second consecutive year of losses recorded in the company’s 28-year history.
Chief Executive Officer Mpumi Mpofu reflected that even though this year’s performance has been
much better than the last, the persistent tough operating environment has somewhat slowed down
recovery. She said that the recovery that occurred during the reporting period was supported by a
gradual and intermittent recovery in passenger numbers in comparison to the previous year.
“As severe travel restrictions began to be lifted both at home and abroad, the demand for air travel
increased. Recovery was, however, uneven, with domestic and regional traffic recovering to 57.9%
and 36.1% of pre-pandemic levels respectively,” said Mpumi.
“In contrast, international traffic, hampered by the impact of the Omicron variant in the third quarter
of the financial year, only recovered to 28.9% of its pre-pandemic level. It is estimated that global
traffic will be between 51% to 71% of pre-pandemic traffic levels in the current period (2022/23).”
Mpumi said that aeronautical revenue improved significantly by 121.7%, to R1.8 billion (up from
R810 million) due to the increase in aircraft landings and departing passenger numbers during the
period, as well as the 3.3% tariff increase for the year.
Non-aeronautical revenue increased by 56.5% to R2.1 billion, from R1.3 billion in 2021. This
improvement was again due to increased passenger numbers, as well as the lifting of certain trade
restrictions during the various levels of lockdown. Total revenue from non-aeronautical sources takes
into account rental revenue reprieves of R591 million (2021: R1.4 billion) granted to tenants to offset
the negative impact of the pandemic.
In a similar vein, retail revenue increased by 95.8% to R607 million (2021: R310 million) due to
increased traffic volumes. This should, however, be seen within the context of a reduction of 15.1%
in retail revenue per passenger to R57.56 (2021: R67.77).
Aircraft landings increased by 104.6%, to 176 816 from 86 434 in the previous year and departing
passenger numbers improved by 130.6%, to 10 538 341 from 4 69 758.
“We are still experiencing 30% less volumes than in pre-COVID-19 travel, but the domestic market
has been instrumental in driving our performance during the period under review,” said Mpumi.
She added that the results for the reporting period nevertheless demonstrate ACSA’s resilience in
the face of the unprecedented crisis precipitated by ongoing lockdowns, travel restrictions and the
need to dramatically scale back operations. The results clearly indicate that the business is firmly in
a recovery phase.
The R900 million Capital and Operational Expenditure Reduction Programme introduced in the
previous year to sustain operations in light of significantly reduced revenue, enabled ACSA to meet
the liquidity challenges it faced throughout the reporting period. Reduced expenditure and a
disciplined cash management process enabled the group to maintain relatively low levels of
borrowings.
Mpumi said that in line with the intermittent relaxation of lockdown restrictions, operating costs
increased by 3.9%, from R1.9 billion to R2 billion, during the period. The cost-reduction initiatives
introduced in the previous financial year continued to minimise operating costs, which have been
maintained at 75.2% of pre-pandemic levels for the past two years.
She notes that some operational costs did, however, increase in comparison to the previous year.
Most notably, repairs and maintenance expenditure increased by 16.4%, to R317 million (2021:
R272 million) and security costs increased by 6.9% to R452 million (2021: R423 million). Information
systems operational costs reduced marginally by 4.9% to R247 million (2021: R259 million).
“Utilities costs, which include property rates and taxes, water and electricity, accounted for 23% of
our total operating costs, compared to 22.6% in the previous period. Expenditure for the year
increased by 6% to R466 million from R440 million in 2021,” she said.
“Capital expenditure remains limited to maintenance and refurbishments informed by statutory
requirements. The group continues to identify efficiencies in its operations, keeping operating
expenditure to a minimum,” said Mpumi.
ACSA will continue to monitor the local and international business environment to determine
appropriate responses to challenges that may arise and to ensure the company’s long-term financial
sustainability.
Restatement of the annual financial statements
Noteholders are advised of the restatements to the 2019/20 and 2020/21 figures in the 2021/22
annual financial statements, as outlined in note G.16 of the annual financial statements.
Property, plant and equipment and depreciation and intangible assets
Assets emanating from capital projects completed in previous financial years were not transferred
from work in progress to the relevant category (mainly computer equipment). As a result,
depreciation and accumulated depreciation were understated. The error has been corrected.
Interest on a loan obtained to finance capital projects, was reclassified from finance expense to
property, plant and equipment in line with IAS 23 - Borrowing costs
Legal costs
The Company paid legal fees on behalf of its 100% subsidiary, ACSA Global Ltd, in 2020. These
were recognised in the Company’s records rather than those of the subsidiary. The financial separate
and consolidated financial statements have been restated to correct the error.
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 at
https://airportsir2022.onlinereporting.co.za/downloads/.
Media enquiries:
Gopolang Peme, Senior Manager: Communication
E-mail: gopolang.peme@airports.co.za
Mobile: 067 422 9988
15 September 2022
Debt Sponsor
The Standard Bank of South Africa Limited
Date: 15-09-2022 02:40:00
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