By By Business Express Reporter
Centum Group has reported a sharp drop in profit after tax to Sh812.82 million for the financial year ending March 2025, down from Sh2.60 billion in the previous period.
The decline was largely driven by two factors: lower fair value gains on investment properties, following an extraordinary transaction booked in the prior year, and a hefty Sh1.2 billion deferred tax charge stemming from regulatory changes. Specifically, the tax rate on land not held for sale rose from 5% to 15%, creating further pressure on the Group’s bottom line.
Despite the setback, Centum’s underlying performance remained resilient. The Group recorded a 28% rise in total comprehensive income, climbing to Sh3.26 billion from Sh2.54 billion last year, supported by strong cash flows across most business segments. This points to solid fundamentals within Centum’s diversified portfolio, even as accounting adjustments weighed on reported profits.
The balance sheet expanded during the year, with total assets growing from Sh76.17 billion to Sh82.35 billion, though this was accompanied by a rise in total liabilities from Sh36.41 billion to Sh39.11 billion.
Performance across subsidiaries and business units was mixed. The investment company posted a slight dip in profit after tax, down to Sh547.14 million from Sh555.97 million in 2024. However, it made significant progress in reducing debt, cutting investment acquisition borrowings to Sh690 million from Sh1.95 billion a year earlier.
The Group’s trading businesses narrowed their losses to Sh489.83 million, a marked improvement compared to the Sh705.90 million loss in 2024. Meanwhile, the financial services segment staged a strong turnaround, swinging to a Sh90.18 million profit from a Sh500.37 million loss the previous year, highlighting the success of recent restructuring measures.
On the other hand, real estate performance weakened, with profit falling sharply to Sh1.50 billion from Sh3.60 billion in the prior year. Within this segment, the Two Rivers Special Economic Zone (SEZ) reported profit growth to Sh88 million, while the broader Two Rivers Development Group booked a loss of Sh242.70 million.
The mixed results underscore both the challenges still facing some sectors and the gains being realized from Centum’s long-term, value-driven investments.
In line with these outcomes, the Board declared a dividend of Sh0.32 per share, extending a downward trend from the Sh1.20 per share payout in 2019.
