Centum Investments has returned to profitability, posting a Sh2.5 billion after-tax profit for the year ending March 2024, driven by improved performance and profitability among its investee companies. This marks a significant recovery from the Sh7.3 billion net loss reported for the previous financial year ending March 2023.
During the review period, Centum’s investment portfolio grew by Sh6.1 billion, reaching Sh66.5 billion. The company attributes this growth to its business model, which focuses on identifying compelling investment opportunities.
CEO James Mworia emphasized that this performance marks a strong beginning for the group’s Centum 5.0 growth strategy, which aims to optimize value over the next five years.
Mworia acknowledged the volatile operating environment but expressed confidence that opportunities remain, which can be capitalized on through an active investment strategy to optimize and monetize portfolio value.
The company’s retained earnings, which represent the portion of net income reinvested back into the business, increased by Sh2.6 billion, bringing the total to Sh39 billion, positioning Centum strongly for future investment opportunities.
Centum Real Estate emerged as one of the most profitable divisions this year, with Sh3.7 billion in sales, a Sh3.6 billion increase in property value, and a Sh2.5 billion net profit. The company has proposed a Sh210 million dividend payout (Sh0.32 per share), a decrease from the Sh0.60 per share dividend distributed in 2023.
Centum executed a buyback of 9.7 million shares, accounting for 24 percent of the traded volume as of July 26, 2024. The group’s consolidated financials showed a 157.6 percent increase in investment income to Sh607.4 million, while the company-specific financials reported a 46 percent decline in investment income to Sh1.152 billion.
Operating expenses for the group increased by 16.9 percent to Sh556.9 million, with the operating loss significantly reduced to Sh352.9 million from Sh1.4 billion in 2023.
In the company-specific financials, operating expenses rose by 13.3 percent to Sh579.7 million, while operating profit increased by 34 percent to Sh277.6 million. Net profit soared to Sh5.5 billion, marking a significant turnaround from the Sh4.9 billion net loss in 2023.
