Centum posts Sh6.8b profit in six months

Friday, November 29th, 2019 00:00 |
Nairobi Bottlers, Centum Group CEO James Mworia.

Centum Investment Group’s net profit increased from Sh2.1 billion to Sh6.8 billion for the six-month period ended September 30 on the back of a strong investment income performance from its three business units.

It recorded a pretax profit of Sh7.2 billion up from Sh2.56 billion in the first half of the previous financial year.

Compared to similar performance last year, the firm which invests in both listed and non-listed companies said investment and other incomes increased to Sh12.4 billion in the six months to September from Sh4.05 billion a year earlier.

Equity arm

Its private equity arm posted an operating profit of Sh8.4 billion, compared to Sh1.8 billion registered a year ago, helped by stake sales in two drinks companies — Almasi Beverages and Nairobi Bottlers, according to the firm’s financial results for the first six months of the year released yesterday.

Investment income grew by 205.6 per cent year-on-year to Sh12.4 billion partially due to Sh2.6 billion gains realised from the exit of Almasi Beverages and Nairobi Bottlers. The two projects had an initial cost of Sh3.4 billion.

Genghis Capital says there was a Sh2.3 billion impairment provision driven primarily by a Sh2.1billion provision on the debt investment in Amu Power project which is currently subject to litigation.

The firm has sustained a strategic shift towards cash generative business and building liquidity reserves rather than asset accumulation.

Speaking last month after the sale of Almasi and Nairobi Bottlers, Centum Group CEO James Mworia said Centum remains committed to its vision of being Africa’s foremost investment channel and will seek to redeploy the funds to cash generative business in line with its investment plan.

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