MPICO Limited’s Profit After Tax Soars by 61% in 2023 with Rental Income, Fair Value Gains, and Reduced Government Arrears
- What were the main contributors to the increase in MPICO's profit after tax in 2023?
- The main contributors to the increase in MPICO's profit after tax in 2023 were the 5% rise in rental income, the 35% increase in fair value gains, and the reduction in government rental arrears due to payments made via promissory notes.
Key Insights from MPICO’s HY2023 Interim Report
- Rental income increased by 5% to MK3.46 billion from MK3.30 billion in June 2022 due to rent reviews and improved occupancy levels.
- Fair value gains for the period increased to MK4.48 billion from MK3.32 billion in the corresponding period last year, marking a 35% movement.
- Operating expenditure rose by 29% to reach MK2.73 billion, up from MK2.11 billion in the previous year due to inflation.
- The company posted a 61% increase in profit after tax, which rose to MK5.08 billion in June 2023 from K3.16 billion in June 2022.
- Government rental arrears decreased to MK4.9 billion as at 30 June 2023 from K6.0 billion owing as at 31 December 2022 due to payments made via promissory notes.
- Despite continued economic hurdles, including uncertain weather patterns, foreign currency and power supply shortages, Real GDP growth is projected to average a modest 1.7% in 2023, a downward revision from the earlier projection of 2.2%.
- Inflation is projected to remain elevated owing to potential further hikes in utility tariffs and energy prices along with rising maize prices.
- The board did not declare a dividend for the period but will assess the position as the year progresses.
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About MPICO Limited (MPICO.mw)
Malawi Property Investment Company Limited (MPICO) is a property company with interests in property development, rentals and property management. The company owns, leases, manages and develops commercial, residential and industrial properties in major towns and cities in Malawi. MPICO’s property portfolio includes offices, high-rise buildings, residential homes, warehouses and retail outlets; providing property solutions for clients in the major towns and cities of Malawi, including Blantyre, Lilongwe and Mzuzu. MPICO owns 35 commercial buildings and a selection of flats, private-lease houses and guest lodges; Its subsidiaries included Capital Developments Limited and New Capital Properties Limited. Malawi Property Investment Company Limited (MPICO) is listed on the Malawi Stock Exchange
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