Southern Sun posts $18.3-million profit in H1 2025

Feyisayo Ajayi -
Key Points
  • South African hospitality group Southern Sun reported a 30% profit increase for the first half of 2025.
  • The company's strong performance was fueled by a combination of factors, including a significant rise in property rental income.
  • Southern Sun's strategic investments and operational efficiency have contributed to its positive financial results.

Southern Sun Limited, led by South African businessman John Copelyn, reported a 30.31 percent profit increase for the first half of 2025. The growth was fueled by diversified revenue streams, including a 21 percent rise in property rental income.

Southern Sun reports strong profit, revenue growth

According to its recently released report, Southern Sun posted a profit of R331 million ($18.38 million) for the six months ending Sept. 30, 2024, up from R254 million ($14.11 million) a year earlier. The growth was driven by operational efficiency, diversified revenue, and effective debt management.

Revenue rose 6.31 percent to R2.97 billion ($164.81 million) from R2.79 billion ($154.65 million), led by a 7 percent increase in rooms revenue, 4 percent growth in food and beverage, and a 21 percent jump in property rental income. These gains offset declines in other areas and exceptional losses.

Operating costs increased 5 percent, while the suspension of load shedding saved R23 million ($1.27 million) on diesel, partly offset by higher electricity tariffs. Net finance costs fell by R21 million ($1.16 million) due to lower net interest-bearing debt, with further savings expected as interest rates decline.

Growth strategy elevates Southern Sun

Southern Sun, a trusted name in hospitality for over 50 years, continues to thrive under John Copelyn's leadership.

The group has invested millions in its portfolio, including merging the Elangeni and Maharani hotels into a 700-room flagship operation.

Total assets edged down 0.76 percent to R13.57 billion ($753.55 million) as of Sept. 30, 2024, from R13.67 billion ($759.15 million) in March.

Meanwhile, retained earnings rose 8.59 percent to R2.09 billion ($115.27 million), underscoring the company’s financial strength and reinvestment capacity.

Southern Sun’s strategic focus and adaptability have helped it navigate challenges, including flagship property closures and a slowdown in demand before the elections.