Africa-Press – Uganda. Leading East African investment firm Centum Investment Company PLC has issued a profit warning, announcing a projected 25% decline in net earnings for the financial year ended March 31, 2025.
The statement, released on Friday by the company secretary Fred Murimi, cites regulatory compliance under the Capital Markets (Public Offers, Listings and Disclosures) Regulations 2023. According to Centum’s Board of Directors, a preliminary assessment of its consolidated financials indicates that profit after tax will fall by at least a quarter compared to the previous financial year.
“This anticipated decline is primarily attributable to lower fair value gains on investment property recorded in FY2025 relative to the previous year,” the statement reads in part.
While sales prices across subsidiaries have remained stable, Centum has not booked as significant a revaluation gain as it did in FY2024.
The firm emphasised that the drop is largely non-cash and accounting-based, resulting from International Financial Reporting Standards (IFRS) that require annual property revaluations.
These revaluation movements, while materially impacting profit, do not affect cash flows or the operational performance of the company.
Despite the dip, Centum reaffirmed its strategic direction, saying the firm remains committed to its long-term value creation plan under the Centum 5.0 strategy.
“We continue to execute our Centum 5.0 strategy, focused on value optimisation across the investment portfolio,” Murimi said. “These initiatives are aimed at delivering sustained, incremental growth in portfolio company performance, which over time is expected to enhance consolidated earnings and shareholder value.”
Commenting on this situation,
Commercial lawyer and economic analyst Silver Kayondo said the development reflects broader instability in the region’s economic and political landscape.
“Things are getting real,” Kayondo remarked. “We need to stabilise our political and economic fundamentals across the board. It is really becoming difficult to create or grow wealth here.”
Centum’s portfolio includes significant investments in real estate, financial services, FMCG, and energy sectors across East Africa.
The firm has, in recent years, focused on reducing debt and improving performance at the subsidiary level.
The company is expected to publish its full audited results in the coming weeks.
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