NICO Holdings Reports 60% Profit Growth, Defying Economic Headwinds
As Malawi grapples with economic challenges, NICO's robust performance offers a glimmer of resilience in the country's financial sector.
LILONGWE, Malawi — NICO Holdings Plc, a Malawi Stock Exchange-listed company, announced a significant increase in profits for the 2023 financial year, bucking the trend of economic challenges facing the country, writes Martin Kamlaike.
At a stakeholder engagement meeting held Tuesday at the Bingu International Convention Centre, NICO group Managing Director Vizenge Kumwenda revealed that the company registered a profit after tax of K59.1 billion, representing a 60% growth from the previous year's 38 billion kwacha.
"As a reflection that the performance was good, our share price grew from 60 kwacha per share to K150 per share, which represented an over 150% increase," Kumwenda said, highlighting the market's positive response to the company's performance.
The banking sector emerged as one of the top-performing assets for NICO, though Kumwenda emphasized that other sectors also contributed significantly to the group's profit margin.
This diversification, he noted, has made the group "clearer and stronger without depending on one line of business."
Despite the impressive results, Kumwenda acknowledged the challenging business environment, citing global economic slowdown, the Russia-Ukraine war's impact on supply chains, and a 67% devaluation of the Malawian kwacha against the U.S. dollar.
Looking ahead, NICO is investing in long-term growth projects, including a hotel under construction at Lilongwe Golf Club, which Kumwenda expects to provide "magnificent returns" once completed.
Purity Chitalo, chair of the Minority Shareholders Association of Listed Companies (MiSALiCO), expressed satisfaction with NICO's performance.
"We are very happy with the performance of NICO as a holding group as well as performance of its subsidiaries," Chitalo said, adding that shareholders and stakeholders are "excited" about the results.
NICO's announcement comes as other Malawian financial institutions report strong performances for 2023, with National Bank of Malawi posting a profit of 71 billion kwacha and NBS Bank projecting profits between 30 billion and 32 billion kwacha.
As Malawi grapples with economic challenges, NICO's robust performance offers a glimmer of resilience in the country's financial sector, potentially signaling broader economic adaptability in the face of global and local pressures.