By Mc Donald Chapalapata, contributor:
Conglomerate Press Corporation (PCL) plc has posted a K36.3 billion profit-after tax for the year ended December 31 2022.
The profit is, however, 19 percent lower than the K45.1 billion profit recorded in the prior year.
In a financial statement signed by PCL Board Chairperson Randson Mwadiwa and Chief Executive Officer Ronald Mangani, the holding company said the prior year’s performance was enhanced by a profit realised from the disposal of a 20 percent stake in Castel Malawi Limited, amounting to K9.6 billion.
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“In 2022, the Group achieved K288.6 billion in revenue, up from K249.1 billion recorded the previous year (2021), translating into a 16 percent growth. At MK36.3 billion, profit-after-tax for the year 2022 was 19 percent lower, compared to K45.1 billion recorded in the prior year.”
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“The prior year’s performance was enhanced by a profit realised on the disposal of a 20 percent stake in Castel Malawi Limited, amounting to K9.6 billion. When this extraordinary item is excluded, the group’s profit-after- tax grew by 2 percent over prior year,” reads the statement.
On the segmental performances of its subsidiary businesses, PCL hailed National Bank of Malawi plc in the financial services segment for a strong performance after registering a profit after tax of K46.6 billion, representing a 40 percent increase from K33.4 billion reported in 2021.
However, the telecommunications segment comprising Telekom Networks Malawi plc and Malawi Telecommunications Limited reported a loss of K3.7 billion in 2022, being 145 percent below the prior year profit of K8.3 billion.
The energy segment comprising PressCane Limited and Ethanol Company Limited registered a 4 percent increase in turnover to K26 billion on the prior year base of K24.9 billion.
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PCL said Puma’s profit of K4.5 billion was 44 percent above the prior year profit of K3.1 billion, notwithstanding the fuel supply challenges experienced, while Macsteel experienced a 66 percent reduction in profitability on the prior year performance of K0.7 billion mainly due to foreign exchange shortages, as the business primarily relies on imports for its materials.
On associated companies, PCL said Limbe Leaf reported a profit of K3.3 billion in 2022, which was 5.5 percent above the prior year profit after tax of K3.2 billion. LifeCo, on the other hand, reported a group profit which was 165 percent above the prior year reported loss.
Looking forward, PCL said in the statement that the macroeconomic landscape remains uncertain as risks to the outlook are heavily skewed towards the downside.
“The group will remain poised to actively manage the portfolio in the face of the current market dynamics, leveraging on its strong track record, diversified asset base, strong capabilities, and synergistic benefits,” reads the statement in part.
