This archive report was first published on 29 November 2019.
On November 29, 2019, Centum Investment announced a significant increase in its profits, thanks to the sale of assets and a reduction in costs. The company's net profit jumped to Sh6.8 billion in the six months ended September 30, a 200% increase from the Sh2.08 billion recorded in a similar period last year.
According to Group Chief Executive James Mworia, the company made gains from the disposal of Almasi and Nairobi Bottlers, which contributed Sh2.6 billion to the profits. Additionally, Centum saved up to Sh990 million after repaying a Sh11.3 billion loan and cutting operating costs.
Centum's debt, which includes a corporate bond and term loan, stands at slightly over Sh14 billion. The company is working to retire all debt by June 2020, with Rand Merchant Bank being one of the creditors owed Sh7.6 billion.
Despite the debt, Centum is optimistic about its financial position, with Mworia stating that the company is 'well-positioned with sufficient liquidity to take advantage of market opportunities.' The firm's private equity business also realized in excess of Sh8.4 billion, while its real estate portfolio brought in Sh6.05 billion from the sale of over 800 units.
