One of the country’s conglomerates, Nico Holdings plc, has revised downwards its profit projections for 2023, a recent published trading statement has shown.
An earlier trading statement showed that the company’s profit was poised to be in the range of K61 billion to K66 billion, representing an increase of between 61 percent and 74 percent on the profit after tax of K38 billion reported in 2022.
However, a fresh statement issued by the company shows that after a review, the company is expected to post a consolidated profit after tax for the year in the range of K58 billion to K60 billion, representing an increase of between 53 percent and 58 percent.
In an interview, Stockbrokers Malawi Limited Equity Research Analyst Kondwani Makwakwa said despite the trading statement showing a slight decrease in anticipated profit compared to the previously released trading statement, the company maintains a commendable position, poised to demonstrate significant profitability improvement relative to the preceding period.
“This positive outlook is bolstering investor confidence. Consequently, it is likely that investors will adopt a long-term perspective, retaining their shares in anticipation of continued positive performance, potentially resulting in the declaration of good dividends. This sentiment is expected to mitigate immediate impacts on the share price,” Makwakwa said.
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Minority Shareholders Association of Listed Companies General Secretary Frank Harawa said no shareholder could be happy with such news.
However, he was quick to point out that corporate governance issues are being followed, which is exciting to the shareholders.
“We are seeing companies adhering to the good rules of corporate governance. I’m saying this because previously they could have just left the trading statement as it was, and then surprise us in the end. Still more, the new figures are good news but we ask our listed companies to give us at least a reason,” Harawa said.
