As at 31 December 2024, Malawi met the requirements to be designated as a hyperinflationary economy under IAS 29 ‘Financial Reporting in Hyperinflationary Economies’. The Group has therefore applied hyperinflationary accounting, as specified in IAS 29, at its Malawi operations whose functional currency is the Malawian kwacha. This resulted in an opening balance adjustment as of 1 April 2024 amounting to $308m to consolidated equity in the previous year. The upliftment of the assets on initial adoption resulted in the net asset value of Malawi exceeding its estimated recoverable amount. As a result of this, the initial adjustment was capped at the recoverable amount.
During the year ended 31 March 2026, the CPI has increased by 24% (31 March 2025: 40%) and the average adjustment factor used to determine the impact on the income statement for the year ended 31 March 2026 was 1.01 (31 March 2025: 1.01), which represents the movement between the average and closing CPI.
The main impact on these consolidated financial statements for the year ended 31 March 2026 and 31 March 2025 of the above-mentioned adjustments are shown below:
For the year ended | ||
|---|---|---|
31 March 2026 $m | 31 March 2025 $m | |
Increase in revenue | 2 | 3 |
Operating loss | (22) | (18) |
Net monetary gain relating to hyperinflationary accounting | 17 | 26 |
| Loss after tax for the year | (11) | (12) |
As of | ||
|---|---|---|
31 March 2026 $m | 31 March 2025 $m | |
Increase in non-monetary assets | 687 | 514 |
Increase in equity | 687 | 514 |