This archive report was first published on 13 June 2020.
On March 31, 2020, Centum Group, an investment firm, announced a Sh7.4 billion after-tax profit for the year ended March 2020, representing a 79% jump in earnings.
This significant profit sets the stage for a dividend payout of Sh798 million to its shareholders.
As part of its five-year 'Centum 4.0' strategy, the company aims to build a strong, debt-free balance sheet, enhance liquidity, and boost cash generation through its portfolio companies.
Centum's total income rose by 33.7% to Sh15.8 billion, with the company's four main business units - private equity, real estate, marketable securities, and development - recording robust performance in the year.
Notably, the company earned Sh12.6 billion from the sale of its stake in Almasi Beverages Ltd, Nairobi Bottlers Ltd, and King Beverage Ltd in October 2020, significantly boosting its liquidity position.
Additionally, Centum repaid Sh6.6 billion on its five-year corporate public bond and paid off $75 million (Sh7.8 billion) of a US dollar-denominated debt in September 2019.
According to James Mworia, the Centum Group chief executive, the improved financial performance sets a solid base for the remaining years in the strategy.
“This deleveraging will save Sh1.8 billion in annual finance costs, which will further enhance the company’s future performance and dividend payout,” Mworia said.
