09th December 2022, Lusaka, Zambia: Shareholders of ZCCM Investments Holdings Plc (ZCCM-IH) have approved an K85.3 million dividend at K0.53 per share during the 18th Annual General Meeting held today virtually.
This follows a Group profit of K2.1 billion (compared to K307 million in 2019)and a Company profit of K568 million (compared to K153 million in 2019) recorded for the 2020 financial year end. This represents 594% and 271% increase in profits compared to the previous year respectively.
At the ZCCM-IH Group level, the recorded profit was on account of:
- 254% growth in share of profit on equity accounted investee companies due to favourable copper prices recorded in 2020 of US$6,200 (2019: US$6,000)
- 70% growth in dividend received due to improvement in performance of investee companies and growth in investee companies paying dividend to 2 this year (2019: 1 investee companies).
The profit recorded at Company was mainly due to:
- 32% growth in investment income recorded of K226 million, (2019: K171 million).
- Significant depreciation of the Kwacha against the US Dollars from an average of K13.2/US$ in 2019 to K18.6/US$ in 2020 resulted in significant increases in exchange gains, as majority of assets are denominated in US Dollars.
The Group total assets increased by 56% to K23.7 billion (2019:K15.2 billion) mainly on account of 63% increase in investment in associates, and 219% increase in Cash and Cash equivalents due to receipt of dividends in Dec 2020 of K208 million.
Further, the Group recorded a 95% increase in retained earnings to K4.2 billion profit reported in 2020 from K2.1 billion reported in 2019 due to recorded a profit of K2.13 billion for the year; and at Company level, retained earnings increased by 53% to K1.5 billion (2019:K978 million) due to recorded profit for the period of K568 million
This is the sixth consecutive time that the Company has declared a dividend in line with its strategic goal of ensuring shareholder return on investment.
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