Southern Sun, led by John Copelyn, reports $57 million profit in 2025

Key Points

• Southern Sun’s 2025 profit rose 19.39% to $57 million, supported by higher room occupancy, improved Ebitdar margins, and disciplined cost and capital management.
• Revenue climbed 9.29% to $368.61 million, as room sales gained 10%, food and beverage income rose 6%, and rental income surged 19% year-over-year.
• Finance costs fell on reduced net debt after repaying $85.41 million in borrowings, while headline earnings jumped 28.46% to $55.82 million.

Southern Sun Limited, led by South African businessman John Copelyn, delivered strong full-year results for the period ended March 31, 2025, driven by robust trading in the Western Cape and improved performance in Gauteng, as travel demand and occupancy rates continued to recover despite persistent macroeconomic headwinds.

Southern Sun reports strong profit, revenue growth

According to its recently released report, the Johannesburg-based hospitality company posted a profit of R1.02 billion ($56.99 million), up 19.39 percent from R856 million ($47.74 million) a year earlier. The performance was underpinned by higher room occupancy, improved Ebitdar (Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring/Rent costs) margins, and disciplined cost and capital management.

Revenue rose 9.29 percent to R6.61 billion ($368.61 million), driven by a 10 percent increase in rooms revenue to R4.41 billion ($245.92 million), while food and beverage income rose 6 percent to R1.59 billion ($88.69 million). Property rental income contributed R272 million ($15.17 million), up 19 percent. Segmentally, the Western Cape posted the highest Ebitdar margin at 45 percent, followed by the SA Portfolio at 35 percent. Offshore operations remained under pressure, with income declining 9 percent and margins narrowing to 13 percent.

Disciplined cost management, lower debt improve cash flows 

Operating profit rose to R1.56 billion (87.02 million) from R1.39 billion ($77.54 million) the prior year, supported by a R105-million ($5.86 million) fair value gain on investment properties. This offset a R129-million ($7.2 million) net impairment of property, plant, and equipment. Headline earnings climbed 28.46 percent to R1 billion ($55.82 million).

Notably, finance costs dropped to R277 million ($15.46 million) from R352 million ($19.65 million), aided by a significant reduction in net debt following the repayment of R1.53 billion ($85.41 million) in borrowings. The group ended the year with R396 million ($22.11 million) in cash and cash equivalents, down from R639 million ($35.67 million), due largely to investment and financing activities.

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 0.65 percent to R13.57 billion ($758.91 million) from R13.67 billion ($763.99 million) in March 2024, largely due to a drawdown in cash and equivalents, which fell to R396 million ($22.12 million). Meanwhile, retained earnings rose 44.64 percent to R2.78 billion ($155.08 million), underscoring the company’s financial strength. Southern Sun’s strategic capital management, paired with a disciplined focus on operational excellence, positions the group well for continued growth amid evolving market conditions.