Centum profit drops 67pc on the back of lower property valuation gains
1 weeks ago, 14:03
, 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.
Category: business finance