Mpico plc has touted its strong performance in 2024 with profit rising by about 72 percent amid economic headwinds characterised by high inflation rate and limited foreign exchange.
In the year ended December 31 2024, the Malawi Stock Exchange-listed property management firm grew its profit to K12.18 billion from K7 billion in 2023.
Speaking during a stakeholders’ engagement forum in Blantyre on Monday, Old Mutual Investment Group acting managing director Mphatso Kasalika said that the company performed well in 2024 despite economic hurdles.
He said: “The rental income growth was good as well at 17 percent year-over-year. We also noted the uplift in terms of property values, which is a good thing for a property business.”
Kasalika said the country continues to face economic challenges such as slow economic growth and high inflation and interest rates, which impacted businesses, particularly in the property sector.
He said: “High inflation meant the cost of operating the business was high. The cost of maintaining the property was an issue.
“Foreign exchange exchange scarcity made it hard for us to find forex quickly to maintain our properties as most of our materials have to be imported.”
Kasalika said the firm is optimistic about the future and sees strong growth prospects for the business.
In a separate interview, Minority Shareholder Association of Listed Companies general secretary Frank Harawa welcomed the company’s performance, but called for more aggressive and strategic action from Mpico management.
He said: “We strongly believe our company can do better. The profits are there, but the dividend per share remains too small.
“The shareholders have invested for years and we are growing impatient for significant returns.”
Harawa suggested that the company should consider diversification strategies such as hospitality ventures and reconfiguring large properties into smaller retail units to unlock value.
He challenged the company to be more proactive in executing its plans, particularly its interest in mining and industrial property investments.
“Talking about opportunities in the mining sector, it is promising, but they need to show shareholders what tangible steps they are taking,” he said.
The company’s annual report indicates that the group’s property portfolio performance improved in 2024.
Reads the report in part: “The occupancy rate for the group increased to 92 percent in 2024 from 91 percent in 2023. The drivers for the strong performance were property renovation, the prime location of the property portfolio and superior customer service.”
Old Mutual Investment Group head of operations Brenda Mwale said the engagement allowed the company to review its performance, present highlights from 2024 and discuss its outlook for 2025.
Mpico plc is 42.98 percent owned by Old Mutual Life Assurance Company. Other shareholders are Public Service Pension Trust Fund at 19.46 percent, Old Mutual Malawi Limited at 11 percent, the public has 21.55 percent while Lincoln Investment Limited has 5.01 percent.
