Listed conglomerate Press Corporation Limited (PCL) expects to post a 70 percent jump in after-tax profit in the year ended December 31 2012.
In 2011, PCL’s performance was affected by the impact of the country’s macro-economic turmoil characterised by acute shortages of foreign exchange and fuel.
This resulted in the group’s after-tax profit shrinking by 20 percent to K6.1 billion (about $7.4m) from K7.7 billion (about $22m) in 2010.
With the likely 70 percent jump in profit, it means PCL’s after-tax profit could hit K10.4 billion (about $29.7m).
PCL, one of the blue chips on the Malawi Stock Exchange (MSE), says in a trading statement on Wednesday the information on which the profit jump is based, has not yet been reviewed or reported on by the company’s auditors.
“Further to the previous trading statement published in July 2012 in respect of the six-month period ending June 30 2012, Press Corporation Limited accordingly advises that profit after tax for the year ending December 31 2012 is expected to be approximately 60 percent to 70 percent higher than the previous corresponding period,” says a statement signed by company secretary Benard Ndau.
In the half year, the company did not perform well largely due to foreign exchange losses incurred following the 49 percent devaluation of the kwacha and the subsequent adoption of market-determined exchange rate.