Scangroup Makes Ksh 130 Million In Profits As The Business Struggles

WPP Scangroup PLC has released its financial results for the year ended 31 December 2023, recording a profit of KES 130 million after tax for the Financial Year ending 2023.

“After 7 years of declining growth, in 2023 we changed the tide by registering a 1% gross net revenue growth to KES 2.2 billion. In FY 2023 23, we recorded an operating profit of KES 269 million excluding restructuring costs. We delivered increased value to our shareholders with an EPS growth of 191%. We are continuously exploring all investment options within the organization – weighing the potential return vs risk,” Miriam Kaggwa, Chief Financial Officer, said.

“We are transforming the business to make it future fit, agile, and be true to a future where technology meets creativity. We have built a strong technology stack to support innovation-led growth for our agencies. The next stage of transforming our business is focused on continuing to invest in technology and talent, leveraging the gig economy and AI for agility, and developing net-zero targets in line with our sustainability agenda,” Patricia Ithau, Chief Executive Officer, said.

Summary of the financial performance:

The following figures are in comparison to the year ended 31 December 2022.

• Gross profit – KES 2.2B, +1%
• Profit after tax – KES 130 million, +189%
• Reported EPS up 191% to KES 0.31
• The company’s board has recommended no dividend payout to shareholders.

Concluding remarks

We continue to make progress towards bottom-line growth by investing in technology which is the bedrock of the future. While macroeconomic shocks are anticipated to continue to impact business growth, we have invested in tools and implemented measures to cushion the group while maximizing shareholder value.

Read Also: Women Now Form 52% Of WPP Scangroup’s Workforce