NAIROBI, Kenya, April 28 – WPP Scangroup PLC bounced back to profit-making territory in 2022, posting a Sh75million profit during the year, a 297 per cent jump from the Sh38 million loss posted in 2021.
The improved performance was attributable to the firm netting new business worth Sh386million in the year.
Despite the increased earnings, the firm’s gross revenue declined by 3.67 per cent to Sh7.3billion from Sh7.6billion in 2021.
“We have recorded improved performance in 2022, with YoY profit after tax up by 298 per cent across our WPP agencies. While market pressures led to relatively reduced client margins, we navigated these challenges by leveraging on our footprint and our expertise to build our client portfolio, recording net new business of KES 386 million in 2022,” said Miriam Kaggwa, WPP Scangroup Chief Financial Officer.
Operating and administrative expenses of the Group increased by 3 per cent to Sh2.5billion due to provision against old Value Added Tax receivables deemed not recoverable.
This saw the group’s gross profit decline by 6.7 per cent to Sh2.2billion.
“We have strong momentum for 2023 backed by exceptional talent, world class technology and supportive clients who continue to inspire and channel our creative drive. We will continue to implement our strategy, invest in technology and deliver superior value to our clients, employees and communities,” said Patricia Ithau, WPP Scangroup Chief Executive Officer.
The company’s board has recommended no dividend payout to shareholders.
