Sanlam issues profit warning for FY 2020
Sanlam Kenya has issued a profit warning for the financial year 2020 due to the harsh operating environment occasioned by the novel coronavirus.
“Based on our un-audited end-of-year financial results and information currently at the board’s disposal, we wish to report that our projected net earnings after tax for the period ended December 2020 will reflect a decline compare to the prior year earnings,” said Sanlam Group Chairman John Simba.
“This is due to the effects of COVID-19 pandemic on the local economy and foreign exchange rates which had an adverse impact on the valuation of the Group’s net assets,” he added.
The NSE listed firm in six months to June 2020 recorded a net loss of Ksh99.1 million during the release of its half-year profit.
The firm said it adopted cost-cutting measures and innovation to survive the pandemic.
“In response to the challenging operating environment, the Board of Directors applied its focus on innovation and cost savings,” Sanlam chairperson John Simba said.
The board of directors has further maintained a positive outlook on the business as the pandemic and its negative impacts are expected to dissipate while the Group’s initiatives continue to support the improvement of financial performance going forward.