Kenya’s largest publicly traded investment firm, Centum Investments has reported a 21% decline in profit before tax for the half year 2018 period to Sh 2.2 Billion from Sh 22.7 Billion in the same period last year.
The decline is mainly attributed to the negative impact of interest rate cap on its Banking unit, Sidian Bank and lower income from other business units.
Revenues grew slightly by 1% to Sh 8.8 Billion from Sh 8.5 Billion while operating profit fell 119.5% to Sh 111.5 Million as gross profit increased by 9.4% to Sh 549 Million.
The results were posted in a challenging operating environment re; prolonged political & harsh economic environment forcing the company to shelve plans to exit some of its investments. Centum CEO James Mworia also noted that they expect large exits in the next 12 months and allocate the proceeds to marketable securities and some new projects.
Centum’s net profit for the period declined by 21% to Sh 1.6 Billion while profit from associate companies (Nairobi Bottlers, Platcorp & Two Rivers Lifestyle) grew by 64% to Sh 568 Million.
Two Rivers Update
Centum also revealed that about 400,000 people visit the Two Rivers Mall every month against a target of 450, 000. Further, the occupancy at the mall is now at 72% with a target of 85% occupancy by the end of the year. The complex now has about 220 stores and a Cinema offering expected in the first quarter of next year. The CEO also revealed that Victoria Commercial Bank will move its headquarters to the mall in the coming year.
