- To invest K13bn at Maldeco
Dual-listed conglomerate Press Corporation Limited (PCL) has revealed plans to invest $23 million (K13 billion) between 2016 and 2017 to transform its operations at the Foods Company Limited, formerly Maldeco in Mangochi.
In its published statement accompanying unaudited interim results for the period ended June 30 2015, PCL said the search for a joint venture partner in its fishing business is at advanced stage, following receipt of expressions of interest from potential investors.
In the reported period, PCL, which is listed on Malawi Stock Exchange (MSE) and London Stock Exchange (LSE) as a global depository receipt, has posted a nine percent reduction in profit to K9.7 billion from K10.6 billion during the same period last year.
Reads the financial statement in part: “The operating environment, characterised by compressed disposable income, high interest rates, volatile exchange rates and high inflation had a negative impact on the performance of the group.
“The results were further negatively affected by depressed gross margins due to stock losses in the fast moving consumer goods segment and operating inefficiencies in the brewing and bottling group.”
The statement said the financial services segment anchored by listed National Bank of Malawi, continued to be the main driver of the group’s results and registered an 11 percent growth in earnings.
The telecommunications segments of Malawi Telecommunications Limited (MTL) and TNM delivered excellent results, with the mobile phone business registering a 24 percent and 43 percent growth in revenues and earnings respectively.
“The mobile phone company made significant savings on interest costs, following the restructuring of its debt capital by issuing a commercial paper. The fixed phone business, which is in the process of setting up an infrastructure company to streamline its operations and improve efficiency, achieved a 26 percent growth in its revenues,” reads the statement.
The energy sector produced satisfactory results, which more than doubled its earnings due to availability of raw materials at the beginning of the year.
The statement said that “the consumer goods segment incurred a loss due to a decline in sales revenue and increased costs following the breakdown in controls in procurement and inventory management uncovered at the beginning of the year”.
PLC directors have since proposed an upward adjustment of interim dividend to K480.8 million from last year’s K420.7 million, representing K4 per share from last year’s K3.50 per share to be paid on October 30 2015 to shareholders registered in the books of the company at the close of business on September 25 2015.
PCL said it is well positioned to remain the dominant company in the private sector.
At the close of business on Friday, PCL share price gained K18.75 to close the week at K535.