Africa Prudential records 48% decline in H1 pre-tax profit

Africa Prudential Plc has released its unaudited financial statements for the half year (H1) period ended June 30, 2023.

The company’s revenue from contracts with customers increased to N1.2 billion, compared to N928 million in H1 2022, representing 31 percent year-on-year (YoY) growth.

During the period under review, revenue from contracts with customers increased by 31percent, driven by a 48percent year-on-year growth in digital technology services and a 4percent growth in revenue from the Registrar business.

Interest Income of N950 million, compared to N1.1 billion in H1 2022 represents 11percent year-on-year decline. The company recorded an 11percent year-on-year decline in interest income owing to a decrease in the available investible funds.

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Gross earnings of N2.2 billion, compared to N2 billion in H1 2022 (9percent YoY growth). Profit Before Tax decreased to N597 million, compared to N1.2 billion in H1 2022 (48percent YoY decline).

Profit before Tax showed a 48percent YoY decline. This was driven by the interplay of the year-to-date (YtD) expenses.

However, the cyclical nature of the company’s business also impacted on revenue anticipated for the period.

Profit After Tax (PAT) of N415 million, compared to N936 million in H1 2022 (56percent YoY Decline); Earnings Per Share dropped to 21kobo (47kobo in H1 2022).

The company’s total assets rose to N20.4 billion, compared to N19.2billion as at full year 2022 (6percent YoY growth); while total liabilities increased to N11.6 billion, compared to N9.8 billion as at full year 2022 (17percent YoY growth). Shareholders’ fund stood at N8.9 billion, a 5percent YoY decline from N9.4billion as at full year 2022.

Following this first-half result, Africa Prudential assured of improved performance in second half (H2) of 2023.