PCL forecasts positive economic outlook

By Tawina Maluwa

Malawi’s largest conglomerate Press Corporation Limited (PCL) has forecast a positive economic outlook following the successful fresh presidential elections.

In a summary of unaudited results for the period ended June 30, Group Financial Controller Elizabeth Mafeni and CEO Dr. George Patridge say though the novel coronavirus (Covid-19) pandemic continues to present a significant downside risk to the economy, the Group is building on the strength of being reasonably diversified for continued satisfactory performance.

“The Board had initially stated that the results were likely going to be more than 20% below last year. The assumption was based on the projections on the impact of the Covid-19 pandemic on the Group’s operations. It has, however, turned out that the actual impact is much lower than had been expected”.

The interim results indicate that the Group’s profit after tax for the period was MK12.693 billion compared to last years MK11.168 billion representing a 14% increase.

“The profit was achieved in spite of a challenging operating environment orchestrated by political uncertainties and a tense atmosphere in the run up to the fresh presidential elections as well as the impact of the Covid-19 pandemic which has had a significant impact on the economy”.

Tremendous results were from financial service segment (National Bank of Malawi), telecommunication segment (TNM and MTL), the energy segment (Ethanol manufacturing), and equity accounted businesses such as PUMA.

PCL has diversified interest in 15 companies in Malawi including eight subsidiaries, four joint ventures and one associate company.