Thursday, October 28, 2021

Letshego records gaping decline in EPS

Letshego Holdings Group, the pan-African-listed consumer, has released its full year results for the year ended December 31, 2016 showing a yawning Earnings Per share (EPS). 

The results, released last week shows that the group’s EPS stood at 30.8 Thebe compared to 35.2 Thebe recorded in 2015. 

The decline represents a 13 percent difference between the period under review and the previous financial year.  

At the same time, the group recorded a decline 13 percent in its Profit After Tax (PAT). The impact has been attributed to growing expenses, in part due to its expansion across Africa, and the drastic depreciation of operating currencies versus the reporting currency, which is the Pula. 

The most notable is said to have been the impact of the depreciation of the Mozambique Metical against the Botswana Pula

On the positives, the group’s total revenues exceeded P2.2 billion; a 9 percent increase on the previous year. 

The group also stated that yields on loans to customers and the cost of borrowings were maintained despite the difficult trading environment.

Group Managing Director Chris Low stated that translation losses arising on the conversion of the results of non-Botswana operations had a significant impact on the group’s results for 2016.  

He added that: “The Group is well positioned to benefit from the growing markets in which it is active and views inorganic expansion via acquisitions as important to the acceleration of Letshego’s strategy.”

Meanwhile, the group said that it had finalised the Banking license in Namibia and also managed to integrate its acquisitions (Tanzania and Nigeria) into the business during 2016. 

The group continues to seek deposit-taking licences in other markets including Botswana in a bid to facilitate its financial inclusion agenda. 

“Letshego continues to drive its financial inclusion strategy and strengthen its operations through investment in technology and people as well as through strategic partnerships,” said Low.

The company has since declared a final dividend of 6.5 Thebe per share for the year ended December 31, 2016. 

By close of trading business at the Botswana Stock Exchange (BSE) on Friday the company was the biggest loser for the week, trading 3 thebe lower to close at P2.10 per share.

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