TotalEnergies Marketing Kenya PLC has issued a profit warning, signaling a projected decline in its 2024 full-year profit after tax by over 25% compared to the previous year’s earnings.
This announcement, made in compliance with the Capital Markets (Public Offers, Listings, and Disclosures) Regulations, 2023, highlights the challenges posed by rising finance costs due to high-interest rates and a volatile business environment.
Key Factors Behind the Profit Decline
- High Interest Rates: Elevated borrowing costs have significantly impacted the company’s financial performance.
- Challenging Business Environment: Volatility in global and local markets has compounded financial pressures.
Despite these challenges, the company notes that the recent decline in interest rates offers a glimmer of hope. The easing of rates is expected to reduce financial pressure and improve net income, potentially creating a more favorable outlook for 2025.
TotalEnergies Marketing Kenya PLC reaffirmed its commitment to:
- Ensuring safety and maintaining high operational standards.
- Driving profitable growth and sustaining positive cash flow.
- Implementing cost management initiatives to bolster future performance.
The company remains optimistic about its long-term strategy, expressing confidence that ongoing initiatives will yield improved results in 2025.
The profit warning serves as a critical update for shareholders and investors, underlining the impact of macro-economic challenges on corporate earnings. However, with strategic measures in place, TotalEnergies is positioning itself for recovery in the near future.
Investors and stakeholders will be closely monitoring the company’s performance and the broader economic conditions as 2024 unfolds.