PCL half-year profit hits K10.6bn
Conglomerate Press Corporation Limited (PCL) has posted a K10.6 billion after-tax profit in the half year ended June 30 2014, a 44 percent increase from last year’s K7.3 billion.
According to published unaudited financial results, the group’s the performance was achieved following the good performance its financial services segments.
The Malawi Stock Exchange (MSE)-listed PLC says the telecommunications segment which comprises Malawi Telecommunications Limited (MTL) and TNM delivered exceptional results.
“The mobile phone business more than doubled its earnings while the fixed line-phone business made a profit mainly due to exchange gains realised on its foreign currency exposure as well as gains made on sale of an investment as part of restructuring of its business activities,” reads the statement jointly signed by the group’s chief executive officer Matthews Chikaonda, board chairperson Clement Chilingulo and financial controller Elizabeth Mafeni.
The fuel distribution business registered a 61 percent growth in its earnings while earnings from steel distribution grew by 43 percent, according to the results.
PCL said the fisheries business made a loss mainly due to the decline in fish catches on account of changing weather patterns and lower than planned harvests from aquaculture as the pond culture project is still at development stage and the energy segment whose earnings declined due to a late start in production by the sole supplier of feed stock occasioned by the prolonged rainy season.
The group its performance was achieved on the backdrop of a general slowdown in business activity due to uncertainty in the run-up to the general elections and reduced government spending due to the appreciation of the kwacha.
Looking into the future, PCL says the business environment remains uncertain in the absence of a clear statement from the donors on their position regarding budgetary support.
“The group is positioned to deliver planned results under the circumstances. The focus will be to nurture and grow its current investments while exploring opportunities in energy generation,” reads the statement.
PCL directors have since proposed an interim dividend of K420.7 million, representing K3.50 per share from last year’s K240.4 million, an equivalent of K2 per share.
