Old Mutual Holdings PLC has successfully turned around its financial performance, reporting a net profit of KSh 249 million for the first half of 2024.
This marks a significant improvement compared to the net loss of KSh 348 million recorded in the same period last year.
The conversion of shareholder loans into equity led to a substantial decrease in finance costs. A reduction in the effective tax rate from 150% to 70% positively impacted profitability.
Despite the overall profit, operating profits fell by 27% due to increased claims and reinsurance expenses.
However, shareholders will not receive an interim dividend this year.
We’re thrilled to announce a 185% growth in our profit before tax, now at KES 1.1 billion! This growth reflects our commitment to understanding and meeting our customers’ evolving needs. #OldMutualFinancialResults #UnlockingPossibilities pic.twitter.com/z5Tt0HPKiw
— Old Mutual Kenya (@OldMutual_Ke) August 30, 2024
Old Mutual’s CEO, Arthur Oginga, expressed confidence in the company’s future performance, citing its strategic initiatives and innovative approach.
“Despite the challenges we faced in the first half of the year, we are confident that our strategic initiatives and innovative approach will position us for a strong performance in the coming months,” he said.
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