@CapitalFMNews

Centum profit drops 67pc on the back of lower property valuation gains

5 months ago, 13 June 14:03

By: Margaret Njugunah

, NAIROBI, Kenya, Jun 13 – Centum Group has attributed its drop in profits for its full-year 2018 results to lower property valuation gains and delayed exits from companies that it was unable to close by year-end.

The Group has posted a 67 percent decline in net profit to Sh2.7 billion, compared to Sh8.2 billion recorded last year.

Centum Chief Executive James Mworia says profits could have been 42 percent higher than the previous year if the gains had been booked.

The Group is in the process of disposing of GenAfrica Asset Managers in the current financial year, while it exited  Platcorp Holdings in December 2017, resulting in a realized gain of Sh1.4 billion at the holding company level and Sh673 million at consolidation level.

Despite the decline in profitability, Mworia says its beverage business posted a 6 percent year on year increase in revenues growth, on the back of volume growth.

“Our growth equity business did well with 70 percent of businesses recording profits. Our beverages business did well, constituting 58 percent of that particular portfolio. We had challenges in the banking subsidiary due to the interest rates cap but we expect it to perform better this year,” Mworia said.

The Group’s total revenues amounted to Sh13.7 percent, marking a 1 percent rise from last year’s Sh13.6 percent.

The Group operates in six sectors that Include real estate, power, financial services, FMCG, agribusiness and education.

Though he was cagey on the details, Mworia revealed that the group intends to venture into the health sector, as part of its contribution to the Government’s Big Four Agenda of universal health care, affordable housing, boosting manufacturing and food security.


Read More


Category: business finance

Suggested

8 minutes
@AfricaNews - By: Abdur Rahman Alfa ...
Tanzania govt says World Bank not scrapping $300m loan | Africanews

The fund withdrawal was reportedly over the policy of refusing reentry of pregnant school girls to public schools after giving birth. The position has been strongly defended by government in the past. ...

Category: africa africa_business business news
9 hours ago, 11:44
@StandardMedia - By: Reuters
Pentagon to counter China, Russia threats by scaling back troops in Africa

‘’This realignment specifically projects to reduce forces by about 10 percent over the next several years,’’ said Commander Candice Tresch. ...

Category: business news
11 hours ago, 09:57
@StandardMedia - By: Afp
Volkswagen plans to spend 44 bn euros in e-cars by 2023

As part of the new strategy, VW will convert two existing German plants into assembly lines for all-electric vehicles from 2022. ...

Category: business news
11 hours ago, 09:47
@StandardMedia - By: Afp
Trump welcomes trade agreement with China

US President Donald Trump said China has sent a list of trade concessions that has agrees with our requirements. ...

Category: business news
10 hours ago, 10:18
@StandardMedia - By: Reuters
Tanzanian army lands in cashew region to manage crop purchases

Soldiers arrived in southern Tanzania to oversee government management of the country’s cashew nuts. ...

Category: business news
8 minutes
@AfricaNews - By: Daniel Mumbere
Botswana offers tourist visa-on-arrival to boost business | Africanews

The Southern African nation will offer tourist visas on arrival effective November 24, the president announced. ...

Category: africa africa_business business news

@CapitalFMNews

Centum profit drops 67pc on the back of lower property valuation gains

5 months ago, 13 June 14:03

By: Margaret Njugunah

, NAIROBI, Kenya, Jun 13 – Centum Group has attributed its drop in profits for its full-year 2018 results to lower property valuation gains and delayed exits from companies that it was unable to close by year-end.

The Group has posted a 67 percent decline in net profit to Sh2.7 billion, compared to Sh8.2 billion recorded last year.

Centum Chief Executive James Mworia says profits could have been 42 percent higher than the previous year if the gains had been booked.

The Group is in the process of disposing of GenAfrica Asset Managers in the current financial year, while it exited  Platcorp Holdings in December 2017, resulting in a realized gain of Sh1.4 billion at the holding company level and Sh673 million at consolidation level.

Despite the decline in profitability, Mworia says its beverage business posted a 6 percent year on year increase in revenues growth, on the back of volume growth.

“Our growth equity business did well with 70 percent of businesses recording profits. Our beverages business did well, constituting 58 percent of that particular portfolio. We had challenges in the banking subsidiary due to the interest rates cap but we expect it to perform better this year,” Mworia said.

The Group’s total revenues amounted to Sh13.7 percent, marking a 1 percent rise from last year’s Sh13.6 percent.

The Group operates in six sectors that Include real estate, power, financial services, FMCG, agribusiness and education.

Though he was cagey on the details, Mworia revealed that the group intends to venture into the health sector, as part of its contribution to the Government’s Big Four Agenda of universal health care, affordable housing, boosting manufacturing and food security.


Read More

Category: business finance

Suggested

8 minutes
@AfricaNews - By: Abdur Rahman Alfa ...
Tanzania govt says World Bank not scrapping $300m loan | Africanews

The fund withdrawal was reportedly over the policy of refusing reentry of pregnant school girls to public schools after giving birth. The position has been strongly defended by government in the past. ...

Category: africa africa_business business news
9 hours ago, 11:44
@StandardMedia - By: Reuters
Pentagon to counter China, Russia threats by scaling back troops in Africa

‘’This realignment specifically projects to reduce forces by about 10 percent over the next several years,’’ said Commander Candice Tresch. ...

Category: business news
11 hours ago, 09:57
@StandardMedia - By: Afp
Volkswagen plans to spend 44 bn euros in e-cars by 2023

As part of the new strategy, VW will convert two existing German plants into assembly lines for all-electric vehicles from 2022. ...

Category: business news
11 hours ago, 09:47
@StandardMedia - By: Afp
Trump welcomes trade agreement with China

US President Donald Trump said China has sent a list of trade concessions that has agrees with our requirements. ...

Category: business news
10 hours ago, 10:18
@StandardMedia - By: Reuters
Tanzanian army lands in cashew region to manage crop purchases

Soldiers arrived in southern Tanzania to oversee government management of the country’s cashew nuts. ...

Category: business news
8 minutes
@AfricaNews - By: Daniel Mumbere
Botswana offers tourist visa-on-arrival to boost business | Africanews

The Southern African nation will offer tourist visas on arrival effective November 24, the president announced. ...

Category: africa africa_business business news
Our App