Airtel loses K56bn to kwacha decline
Malawi Stock Exchange-listed Airtel Malawi plc, says it has lost K56 billion following a 66 percent kwacha fall experienced in 2023.
The firm said this in its published financial results for the year ended December 31 2023 co-signed by the company’s board chairperson Ngeyi Ruth Kanyongolo and managing director Charles Kamoto.
In 2022, the firm recorded a foreign exchange loss of K12.8 billion due to a 25 percent depreciation of the kwacha.
The development has since weighed down on the company’s profitability, with profit declining by 96 percent to K1.4 billion from the K36.9 billion registered the prior year.
Reads the statement in part: “Profit after tax at K1.4 billion, down from K36.9 billion in the prior year, was primarily impacted by the foreign exchange loss of K56 billion in financial year 2023, compared to a foreign exchange loss of K12.7 billion in financial year 2022
“The economy and the company are exposed to currency volatility, continued scarcity of foreign currency and unfavourable agricultural output.”
However, despite the headwinds, Airtel Malawi plc said the telecommunication firm will focus on investing in its network, growing customers and revenues, containing cost and diversifying currency sourcing to mitigate exposure.
In an interview, Minority Shareholders Association of Malawi general secretary Frank Harawa described the foreign exchange loss as “a serious matter”.
“This is not good for the shareholders,” he said.
During the year under review, the firm registered a 26.4 percent revenue growth to K194 billion, driven by both customer base growth of 8.5 percent and average revenue per user per month growth of 12.3 percent.
However, earnings before interest, taxes, depreciation, and amortisationan, an alternate measure of profitability to net income, was up by 16 percent to K91 billion, supported by strong revenue growth.
