PCL H1 profit to jump 70%
From the look of things, most of the Malawi Stock Exchange (MSE)—listed companies will enjoy good tidings based on the half-year projections of profits. Over the past few weeks, some of the companies have published their trading statements indicating that their half-year profits will jump by a certain margin, albeit, based on unaudited financial results.
Yesterday, dual-listed conglomerate Press Corporation Limited (PCL) also joined a list of companies by indicating that its after-tax profit for the six months ending June 30 2013 is expected to be 70 percent higher than the prior period in 2012.
PCL company secretary Benard Ndau said: “The information on which this trading statement is based has not yet been reviewed or reported on by PCL’s auditors.”
He said the group’s financial statement will be published in September this year after being reviewed and approved by the board of directors at its next meeting on August 30 this year.
In terms of MSE listing requirements, a listed company is required to publish a trading statement if there is reasonable degree of certainty that the financial result to be reported upon next will differ by at least 20 percent from that of the previous corresponding period.
In the year ended December 2012, profit-after-tax for PCL, one of the blue chips on the MSE, jumped by 55 percent to K9.5 billion from K6.1 billion the year before, largely propelled by “exceptional results” in financial services, agro-industrial and energy whose earnings more than doubled.
The financial services sector anchored by National Bank of Malawi (NBM), also listed on MSE, registered 113 percent growth in earnings as a result of improved operating efficiencies and growth in international trade and treasury.
Also, earnings from tobacco processing business at Limbe Leaf Company of Malawi were 180 percent up on last year, largely due to increased volume of tobacco processed buoyed by high carry-over stock from the year before.
PCL said the energy segment achieved good results pushed by increased earnings from ethanol manufacturing at Presscane in Chikhwawa and Ethanol Company Limited (Ethcol) in Nkhotakota.
But the telecommunications segment anchored by Malawi Telecommunications Limited (MTL) and MSE—listed TNM plc was affected by the devaluation of the kwacha in May 2012 hence incurring K5.7 billion in exchange losses in foreign currency denominated loans related to capacity expansion project.
Also, the fisheries business at Maldeco in Mangochi continued to make losses mainly due to the decline in fish catches due to changing weather patterns and the inability to produce enough fish from the cages.
Some of the listed companies that have issued trading statements indicating that their profits will grow compared to the year before include Standard Bank (30 percent), Nico Holdings Limited (more than 100 percent), Real Insurance Company of Malawi Limited (20 percent) and Sunbird Tourism Limited by more than 100 percent.
