2023 Q2 Results: Africa Prudential cite decrease in investable funds as reason for 55% earnings drop

Africa Prudential Plc reported a 55% drop in pre-tax profit for the second quarter of 2023. This was contained in its earnings release published on the Nigeria Exchange.

Key highlights

• The company reported that revenue from contracts with customers fell 13.1% while interest income also fell 19% to N488.1 million in the quarter under review.
• Personnel expenses jumped 43% to N257.9 million compared to N179.9 million same period last year.
• Pre-tax profits fell by 43.4% to N340.4 million compared to N601.6 million same period last year.
• Meanwhile, the company’s cash and cash equivalents also fell from N850.6 million to N311.9 million.
• Total assets rose slightly from N19.2 billion to N20.4 billion.

Company comments: The company explained that the drop in interest income was due to a decrease in the available investible funds.

• “The company explained that the decline was driven “by the interplay of the YTD expenses.
• However, the cyclical nature of our business also impacted on revenue anticipated for the period. We are assured of improved performance in H2 2023.”