Sunbird Tourism (MSE: SUNBIRD), a Malawian hotel group reported a 17% increase in annual profit after tax for 2025, supported by strong revenue growth and higher demand for conferences and catering services despite foreign currency shortages and rising operating costs.

According to a report published by Nyasa Times on July 1, profit after tax rose to MWK12.5bn ($7.2mn) in the year ended December 31, 2025, from K10.6bn a year earlier.

Revenue increased 31% to MWK71.7bn, reflecting stronger performance across the group's hospitality and catering operations.

Board chairperson Luciano Mickeus said the results were driven by disciplined cost management, revenue growth initiatives and continued investment in the company's properties.

“The results reflected prudent cost control, sustained revenue expansion and strategic initiatives across the portfolio,” Nyasa Times cited Mickeus as telling shareholders at the company's annual general meeting in Blantyre, the southern African nation’s commercial capital.

The catering division emerged as a key growth driver as demand for conferences, events and external catering services increased, helping diversify revenue beyond traditional hotel accommodation.

Sunbird declared a dividend of MWK3.75 billion, equivalent to MWK14.34 per share, comprising an interim payment of MWK2.80 per share and a final dividend of MWK11.54.

The company also invested MWK21 billion in refurbishment and expansion projects across its hotel portfolio, including upgrades at Sunbird Mzuzu, Sunbird Livingstonia, Sunbird Nkopola and Sunbird Capital.

Investor confidence strengthened during the year, with Sunbird's share price rising 307% to MWK977.50 by the end of 2025 from MWK240.08 a year earlier.