Cresta Marakanelo has reported a net loss of P10.4 million for the half-year ended 30 June 2025, a sharp reversal from a P5.7 million profit in the same period last year, as revenue contracted and financing costs weighed on performance.
Revenue fell 7% year-on-year to P174.9 million (June 2024: P187.1 million), driven mainly by weaker trading in the business hotel segment, which accounts for more than three-quarters of the group’s room inventory. Operating profit dropped 80% to P2.8 million.
The group attributed the downturn to higher lease depreciation from its expanded leased stock at Cresta Jwaneng, alongside increased administrative costs from refurbishments and new capacity. Food and beverage margins also came under pressure, pulling down the overall operating margin to 32% from 37% a year ago.
Despite the top-line challenges, cash generation improved, with operating cash inflows up 36% to P40.7 million. Cresta cut capital expenditure significantly to P7.3 million from P30 million in the prior period, while debt servicing fell to P30.6 million from P43.8 million.
Total assets remained steady at P568.2 million, but shareholders’ equity slipped 8% to P152.9 million. Borrowings, including current and non-current obligations, stood at P158.2 million.
Managing Director Mokwena Morulane said the company remains focused on cost realignment and operational capacity, while leveraging international arrivals to boost Cresta Mowana’s performance, which grew revenue by 11% year-on-year.
Looking ahead, Cresta said it expects the peak leisure season in the second half of 2025 to provide some uplift, but cautioned that recovery will depend on market conditions and the pace of its repositioning initiatives