Purple Group expects almost 300% decrease in earnings

EasyEquities-owner Purple Group informed shareholders today that it expects a significant decrease in earnings for the year and warned it would swing from a profit to a loss.

The company is set to release its results for the year ended 31 August 2023 soon.

Purple Group expects the following changes to its earnings for the 2023 financial year compared to 2022:

• A headline loss per share of between 1.94 cents and 2.15 cents, compared to headline earnings per share of 1.12 cents – a 273% to 291% decrease.
• A basic loss per share of between 1.80 cents and 1.99 cents, compared to basic earnings per share of 3.64 cents – a 149% to 154% decrease.

Purple Group’s loss per share translates to a total net loss for the year of between R23 million and R25 million, a significant decline from 2022 where it generated a net profit of R45 million.

Purple Group said the past year has been marked by economic fluctuations, including a significant downturn in the economy and escalating interest rates. 

“It’s in these times that true innovation emerges. We faced unavoidable declines in activity-based revenue, primarily driven by muted market volatility and the impact of inflation and higher interest rates,” the company said. 

“These challenges have emphasized the importance of retaining strategic agility and building an increasingly diversified business, which we continue to do.”

The company said new markets, particularly in Southeast Asia with EasyEquities Philippines Inc. and its partnership with GCash, present good growth prospects for the business.

“While taking our products live is proving to be much more difficult and taking longer than planned, our time in the market has been well spent,” it said. 

“We are building strong regulatory relationships, strengthening our ties and opportunities with GCash and building a community through educational engagement with hundreds of thousands of Filipinos every single day.”

The company is also looking to diversify its offerings to achieve more growth.

“Our product portfolio is expanding and is often driven by customer demand. With new introductions like EasyCredit, EasyProtect, and EasyBonds, we’re defining what’s possible in our industry and our clients’ lives,” the company said.

Purple Group is expected to release its results on or about 30 November 2023.