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WPP Scangroup PLC records KES 75m Profit After Tax in FY2022 compared to a Loss After Tax of KES 38m in FY2021

By irene mwende

WPP Scangroup PLC has today released its results for the year ended 31 December 2022.

Speaking during the event
Miriam Kaggwa, Chief Financial Officer, said they have recorded improved performance in 2022, with YoY profit after tax up by 298% per cent across their WPP agencies and delivered
increased value to their shareholders with an EPS growth of 450%. 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

Kaggwa added that they are making strides in driving bottom up growth by transforming their capabilities and investing in technology

Speaking during event chief executive officer Patricia Ithau noted that macroeconomic shocks are likely are impacting business growth and they have invested in tools and effected strategies that aims at cushioning the group while providing share holder value

” We recorded increased pass-through costs but still delivered strong
fundamentals with KES 2.2 billion gross profit.’’ said
Patricia Ithau, Chief Executive Officer, said: “WPP Scangroup PLC continues to deliver high client value driven by innovative, inclusive and impactful creative work across all our
agencies adding that this year their agencies win top industry awards regionally and globally including
the Cannes Lions where Ogilvy Africa was named Creative Agency of the Year.

“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. ” Said CEO

She further added that they will continue to
implement their strategy, invest in technology and to deliver superior value to their clients,
employees and communities.
Summary financial performance

The following figures are in comparison to the year ended 31 December 2022.
· FY reported gross revenue KES 7.3B, – 3.67 %
· FY gross profit KES 2.2B, -6.7%
· Operating expenses increased by 3.3% per cent owing to provision against old Value
Added Tax receivables deemed not recoverable.
Profit after tax KES 75m, +297%
· Reported EPS up 450% to KES 0.14
· KES 386 million of net new business won in FY22.
· The company’s board has recommended no dividend payout shareholders

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