227 percent increase in first half (H1) after-tax profit to K23 billion
from last year’s K7 billion despite what it calls an “unsatisfactory
operating environment”.In the summary of unaudited financial results for the period ended June
30 2018, PCL—listed on Malawi Stock Exchange (MSE) and London Stock
Exchange (LSE) as a global depository receipt—said the results were
boosted by the “deemed disposal of a 60 percent stake in Open Connect
Limited [OCL] valued at K8.48 billion following the issuing of shares to
an equity investor, Harith General Partners, which invests in
infrastructure.
percent growth. The strong performance was a result of the efficiency
drive through cost reductions and increase in margins,” reads in part
the statement jointly signed PCL board chairperson Patrick Khembo, group
chief executive officer George Partridge, group financial controller
Elizabeth Mafeni and chairperson of finance and audit committee Estelle
Nuka.PCL has interests in banking, telecommunications, energy, consumer
goods, real estate and food segment, among others.
In the banking sector, PCL owns 51.5 percent stake in National Bank of
Malawi plc and the financial results show that the MSE-listed bank
registered a 17 percent growth in its loan book.
It said non-performing loans were within acceptable levels, but net
earnings declined by 10 percent affected by lower-than-expected growth
in the loan books required to offset the impact of the reduction in
interest margins due to subdued business environment.
In the telecommunications sector where it has stakes in Malawi
Telecommunications Limited and TNM plc, the mobile phone company (TNM)
registered a 45 percent growth in net earnings pushed by 17 percent
growth in service revenue while MTL registered a 235 percent increase in
net profit boosted by reduction in costs and profit from sales of excess
properties.
The energy sector, where PCL owns Presscane in Chikwawa and Ethanol
Company (Ethco) in Nkhotakota, registered an 83 percent improvement in
its bottom line, largely driven by available feed stocks as both
companies had carryover stock of both finished products and raw materials.
In the consumer goods segment, its retail chain stores under People’s
brand registered a 43 percent reduction in losses.
But the fish farming business registered a loss due operational
challenges, despite strong demand for the aqua tilapia while results in
the real estate business registered a 78 percent improvement in bottom line.
PCL said poor results in bottling and brewing business at Castel Malawi
were a result of what it called operational challenges. During the
period, Castel had to recall some of its products from the market owing
to some defects.
On MSE, PCL which has 120 million shares on issue, is trading at K772
per share.