Servair Abidjan Reports Profit Decline in Q1 Despite Revenue Growth
TLDR
- Servair Abidjan (BRVM: ABJC), an airport services provider and Gategroup member, reported first-quarter revenue of 3.18 billion CFA francs ($5.5 million)
- Net profit fell 6.8% to 346 million CFA francs ($599,000) from 371 million CFA francs in Q1 2024
- The company attributed the profit drop to exceptional charges related to personnel departure costs and provisions for doubtful receivables
Servair Abidjan (BRVM: ABJC), an airport services provider and Gategroup member, reported first-quarter revenue of 3.18 billion CFA francs ($5.5 million), up 3.2% from the same period last year. Net profit fell 6.8% to 346 million CFA francs ($599,000) from 371 million CFA francs in Q1 2024, according to a company statement. Operating profit declined 6.9% to 451 million CFA francs ($781,000).
The company attributed the profit drop to exceptional charges related to personnel departure costs and provisions for doubtful receivables. A dispute with local BCEAO authorities has prevented the company from importing food supplies, further impacting results.
The airline catering and ground handling firm reported 2% growth in aviation-related activities. The company also signed a new contract with Abidjan Terminal for non-aviation services.
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Key Takeaways
Servair Abidjan operates at Felix Houphouet Boigny Airport with registered capital of 1.36 billion CFA francs ($2.36 million). The company provides catering services to airlines departing from Abidjan. The firm currently faces a customs dispute affecting its operations. Customs officials have banned the company from international currency transfers, citing failure to repatriate revenues from meal services provided to airlines. This restriction has halted the company's import capabilities, with resolution efforts underway. The aviation services sector in West Africa faces operational challenges despite regional air traffic growth. A DSP fee agreement signed by all parties in 2024 is moving toward implementation after all suspensive conditions were lifted, potentially improving the company's operational framework.
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