Centum Investment Group has posted the first full year loss in over 40 years with a net loss of Sh.1.37 billion in the full year ended March 2021.
This drop was from the Sh.4.63 billion net profit which the firm posted in the previous year.
According to the firm, the fall in net earnings was hugely driven by a drop in income from investment operations where operating profit fell from Sh8.2 billion to a Sh1.86 billion loss.
“The payment of the dividend is on the back of operating profit of Sh245 million the company recorded in the year and is intended to cushion our shareholders from the effects of the difficult economic conditions while allowing the company to retain liquidity, “said James Mworia, Centum CEO.
During the financial year, Centum’s investments and businesses posted operating losses.
Operating profit fell from Sh.8.2 billion to a Sh.1.86 billion loss. Among Centum’s affected businesses was the Two Rivers Development Group.
In the previous year, Centum booked Sh.12.4 billion one-off gain from disposal of beverage assets.
However, in the year ended March 2021, no such gain was realized.
Centum also booked a Sh.4.2 billion revaluation losses, further hurting the bottom-line.
“A significant contributor to the revaluation losses is the increase in deferred tax liabilities of Centum Real Estate subsidiaries which impacted the valuations of the real estate portfolio company,” said the firm.
Two Rivers Development Limited, in which Centum holds 58 per cent stake posted Sh.1.86 billion loss, an improvement from Sh5.96 billion loss posted before.
Centum founded in 1967 as Industrial and Commercial Development Corporation (ICDC) Investment and it rebranded into Centum Investment in 2018.
