Wpp Scangroup Plc (Kenya) – HY22 gross profit decline by 6% to Kshs 1,040 million

By Published On: August 23rd, 2022Categories: Corporate announcement, Earnings
Scangroup Limited 2022 Interim Results For The Half Year

Scangroup Limited 2022 Interim Results For The Half Year

MANAGEMENT OBSERVATIONS

The Board of Directors hereby announce the unaudited results of the Group for the six month period ended 30 June 2022.

RESULTS

The business focused on rebuilding a strong foundation to support future growth, investing ahead in talent and technology to support clients’ future needs. A tough economic environment tempered marketing expenditure by key clients even with the efforts made to recover from the pandemic. This had an impact on our gross profit, driving a decline of 6% to Kshs 1,040 million over prior period. The investments in all the markets we operate in, coupled with resumption of normal business activities post Covid increased operating and administrative expenses by 4%, with the expectation that these investments would start to bear fruit in the second half of the year. Net interest income remained at the same level as of prior period. Depreciation in the Kenya shilling during the current period led to a higher exchange gain of Kshs 65million compared to a loss of kshs 8 million in prior period.

The Gross Profit before tax reduced by Kshs 73 million for the 6 months ended 30 June as a result of the reduced topline and the increased operating expenses highlighted. The high tax charge in the current period is mainly due to expenses not deductible for tax purposes.

ACCOUNTING POLICIES

The accounting policies used in preparing these financials statements are consistent with those used for the Group’s 2021 annual financial statements.

DIVIDENDS

The Board of Directors do not recommend an interim dividend.

OUTLOOK FOR THE REST OF THE YEAR

Stability in the Kenyan market and conversion of investments made in our other markets will be key to the delivery of a stronger second half.

By order of the Board

Winniefred Jumba
Company Secretary
19 August 2022


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