Kwacha depreciation, others affect TNM operations in 2022

TNM Plc. is confirming a K1.8 billion loss for the year 2022 largely attributed to rising operating costs and depreciation of the local currency against the US Dollar.

Presenting his first annual report to shareholders at the company’s 28th annual general meeting Monday afternoon in Blantyre, TNM chairperson Ted Sauti-Phiri highlighted an 18% rise in operating costs due to spiking energy costs.

He attributed this to increased fuel pump prices and high usage of generators on sites owing to load shedding in the aftermath of Cyclone Ana that devastated Kapichira hydro-power station.

According to Sauti-Phiri, a 200% rise in energy costs from the previous year, a K2.66 billion resulting from the kwacha’s depreciation as well as an increase in interest bearing loans also contributed to the 118% drop in profit after tax compared to K9.7 billion profit in 2021.

“We would have wished for a better outcome on profitability but can only derive comfort that the sustenance of the business in itself bore testimony to the resilience of our business against the harsh environment whilst further provoking our zeal to reinvent ourselves,” Sauti-Phiri said.

Meanwhile, both the chairperson and TNM CEO Michel Antoine Hebert are confident of better results next year considering the positive strides currently being made by the