Good outturn for listed firms

By Benadetta Chiwanda Mia:

Revised trading statements for some Malawi Stock Exchange-listed companies point to a possible increase in profitability for the year ending December 31, 2024.

The upward adjustment in profitability spans in sectors like finance and telecommunication.

Nico Holdings plc initially projected its consolidated profit-after-tax to be between K122 billion and K131 billion, a significant increase of 107 percent to 122 percent over the K59 billion reported in the previous period.

In a revised statement released on Wednesday, Nico adjusted the earmarked profitability level upwards to between K133 billion and K136 billion.

This represents an increase of 125 percent to 131 percent.

In the banking sector, NBM plc initially projected a profit-after-tax in the range of K92.97 billion to K98.25 billion, marking a 29 percent to 37 percent increase over the previous year’s performance.

However, a revision on March 26, 2025 upgraded this estimate to between K100 billion and K102 billion, indicating a profit growth of 39 percent to 42 percent compared to the profit of K71.96 billion in 2023.

NBS Bank has also revised its profit projections upwards, initially expecting gains between K68.6 billion and K72.5 billion, representing an increase of 133 percent to 147 percent.

The revised estimate places NBS’ expected profits to be between K72.5 billion and K73 billion, representing a remarkable 147 percent to 148 percent growth over the previous year’s profits.

Telekom Networks Malawi plc reported the most dramatic turnaround; initially projecting profit of between K8.140 billion and K9.106 billion, reflecting a noteworthy recovery from the K4.760 billion recorded in 2023.

Their revised statement suggests profits will now fall between K9.360 billion and K10.313 billion, indicating a staggering increase of 297 percent to 317 percent.

Commenting on the performances, capital market analyst Kondwani Makwakwa said the upward revision in profit expectations suggested improved operational efficiency, favourable market conditions or strategic decisions that were yielding better-than-expected results.

“This can bolster investor confidence, leading to increased trading activity and potential upward price movements,” Makwakwa said.

Meanwhile, Minority Shareholders of Listed Companies General Secretary Frank Harawa has described the performance as good news.