Letshego recovers but knocks BIHL again

BIHL’s half-year financial results, posted last week, revealed a dip in the group’s operating profit coupled with a sharp decline in accounted earnings which dropped by 39% due to “underperformance of Letshego Africa Holdings as impairments continued to surge”. According to the group’s financial report, impairments in earnings were eroded by an array of difficult macroeconomic conditions as well as by Letshego’s performance.

“The group’s operating profit declined by 24% for the period ended June 30, 2024, compared to the prior year,” BIHL directors reported. “Equity-accounted earnings decreased by 39% mainly due to the underperformance from Letshego Africa Holdings Limited as impairments continued to surge. ‘The group equity value decreased to P5.27 billion from P5.56 billion recorded in June 2023. “The decrease in group equity value is driven by a decrease in the net asset value, especially Letshego whose carrying value was impaired by P189 million.”