Thursday, May 26, 2022
  • About Us
  • ImagiNATION
  • Adverts
  • Rate Card
  • Contact Us
The Nation Online
Advertisement
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
No Result
View All Result
Home Business Business News

PCL plans to divest 20% stake in Castel Malawi

by Steve Chilundu
12/05/2021
in Business News
3 min read
0
Share on FacebookShare on TwitterShare on WhatsAppShare on LinkedinLinkedinShare via Email

Conglomerate Press Corporation plc says it plans to divest a 20 percent stake in Castel Brewery Malawi Limited  after assessing various operational and regulatory issues that continue to negatively affect the beverage manufacturer.

In a statement accompanying the financial results for the year ended December 31 2020, Malawi Stock Exchange-listed PCL said directors concluded that it would be in the best interest of the group to divest the remaining 20 percent stake in its subsidiary. 

Reads the statement in part: “Negotiations to that effect have now been concluded at a price of $12 million [about K9.4 billion], and the proceeds will be realised in 2021.

“The investment has been disclosed as held for sale in the financial statements.”

Co-signed the financial results: Partridge

In the year under review, PCL has posted an after-tax profit of K19.9 billion in the year ended December 31 2020, which is 13 percent lower than the prior year.

The firm has attributed the drop in profit to exchange rate losses amounting to K6.36 billion incurred by Castel Malawi.

In a financial statement co-signed by board chairperson Randson Mwadiwa and group chief executive officer George Partridge, PCL said despite the difficult operating environment, it registered profit before tax of K38.22 billion, five percent lower than the previous year’s K40.31 billion.

Reads the statement in part: “Most group companies could not meet planned turnover levels and group revenues were just level with prior year.”

The statement further said results were negatively impacted by a 90 percent decline in profit from equity accounted investments largely due to losses incurred in the Beverage and Bottling Company occasioned by exchange rate losses.

PCL also said in addition, directors found it prudent to make a provision, pending resolution, in respect of value added tax claims in the mobile phone company by the Malawi Revenue Authority amounting to K2.3 billion up from the previous year’s K1.9 billion following a tax audit.

“The year was defined by the global Covid-19 pandemic and the attendant preventative measures that severely restricted business and commerce affecting all areas of the economy.

“Locally, the situation was further exacerbated by the unsettling effects of the pre and post-fresh presidential election activities which led to a highly unpredictable economic landscape,” reads part of the statement.

In segmental performance, PCL said in the financial services segment, National Bank of Malawi plc delivered strong results with a 31 percent growth in its profit after tax, but the telecommunications segment—TNM plc and Malawi Telecommunications Limited registered 46 percent decline in its profit after-tax.

Previous Post

Greenbelt authority outlines PPP plans

Next Post

Youths fight abortion law

Related Posts

MRA Msonkho House
Business News

Forex shortages could affect evenue collection—MRA

May 26, 2022
Business News

Improved road networks aid farmers’ market access

May 26, 2022
Lately, cooking oil supply on the domestic market has been erratic
Business News

Cooking oil for relief

May 26, 2022
Next Post

Youths fight abortion law

Opinions and Columns

Business Unpacked

Tame egos, take risks to grow economy

May 26, 2022
People’s Tribunal

What was that press briefing all about?

May 22, 2022
Big Man Wamkulu

Wife, in-law plotting my downfall

May 22, 2022
My Thought

Tonse Alliance died on arrival

May 22, 2022

Trending Stories

  • Mutharika on the campaign trail in 2019

    APM under pressure

    0 shares
    Share 0 Tweet 0
  • Musician Martse in hospital after fire accident

    0 shares
    Share 0 Tweet 0
  • Kalindo earmarked for diplomatic post

    0 shares
    Share 0 Tweet 0
  • Nyasa Mobile Limited partners Vodafone

    0 shares
    Share 0 Tweet 0
  • Musicians, fans mourn Martse

    0 shares
    Share 0 Tweet 0

Malawi-Music.com Top10

  • Values
  • Our Philosophy
  • Editorial policy
  • Advertising Policy
  • Code of Conduct
  • Plagiarism disclaimer
  • Disclaimer
  • Privacy Policy
  • Terms of use

© 2022 Nation Publications Limited. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation

© 2020 Nation Publications Limited. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.