By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Newsunplug KenyaNewsunplug KenyaNewsunplug Kenya
  • News
    • Metro
    • Politics
    • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
Reading: Naivas posts Sh2 billion profit in nine months
Share
Notification Show More
Font ResizerAa
Newsunplug KenyaNewsunplug Kenya
Font ResizerAa
  • News
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
  • News
    • Metro
    • Politics
    • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Newsunplug Kenya > Blog > Business > Naivas posts Sh2 billion profit in nine months
Business

Naivas posts Sh2 billion profit in nine months

hallanaija
Last updated: May 22, 2023 6:55 pm
hallanaija
2 years ago
Share
SHARE

Supermarket chain Naivas Limited made a profit of Sh2.1 billion in the nine months ended March, marking a higher earnings growth from a year earlier.

The performance of the private company has been disclosed by Mauritian conglomerate IBL Group which acquired a 26.3 percent stake in the retailer in August last year as part of a consortium that owns a combined 40 percent equity.

“Naivas, the leading supermarket chain in Kenya that the group (IBL) invested in during the first quarter, generated higher profits compared to last year,” the multinational said in a trading update.

“The share of profits for Naivas, as an associate, is being reported for the first time this year and represents 184 million Mauritian Rupees (Sh553.4 million at current exchange rates).”

The Sh553.4 million profit allocated to IBL indicates that Naivas’ total earnings stood at Sh2.1 billion in the nine-month period.

The supermarket operator, which has grown to dominate the formal retail sector, has been consistently profitable over the years.

Naivas

This has attracted major investors who have paid a significant premium to enter its shareholder list.

READ MORE  PS Mwadime, NLB Seek Insights On Employment Practices From South Africa’s CCMA

Previous disclosures showed that the retailer reported sales of Sh65.1 billion in the year ended June 2021 when its net profit stood at Sh2 billion, representing a net margin of 3.18 percent.

This was an improvement from the prior year when it made a net income of Sh1 billion on sales of Sh54 billion, amounting to a net margin of Sh1.9 percent.

The family of Peter Mukuha Kago –the founders of Naivas— in August last year pocketed $32.29 million (Sh4.4 billion) from the sale of an 8.5 percent stake to the IBL consortium in a transaction that valued the retailer at Sh45.6 billion.

The family joined the International Finance Corporation (IFC), German fund DEG and private equity firms Amethis and MCB Equity Fund to sell a combined 40 percent stake in the country’s biggest supermarket for a record-setting $151.97 million (Sh20.9 billion).

The other parties in the IBL-led consortium are Proparco and DEG which reinvested into the supermarket chain.

Established in 1990, Naivas has grown to become the largest supermarket chain in the country with more than 84 stores and employing 8,000 people as of June 2022.

READ MORE  Attorneys want access to details on the Adani and Ketraco agreement.

Its growth came amid stumbles by its rivals such as Nakumatt Holdings, Uchumi Supermarkets and Tuskys which went bankrupt due to large debt or mismanagement.

The financial performance of other significant retailers –Carrefour and Quickmart— is not publicly available.

Naivas has continued to expand, opening a total of seven new stores last year alone and raising its branch count to 91 as of December 2022.

The branches it opened last year include Elgon View Mall in Eldoret, Naivas Nairobi West, Naivas Express Uthiru and Greenwood Mall in Meru. Supermarkets are expanding into busy locations including middle-class residential neighbourhoods.

Govt, KMTC To Construct Building worth Ksh100M To Accommodate More students
Sameer eyes Sh879m from land sale
Directors demand subsidies for the tea industry
CEOs are more upbeat about their companies’ 12-month growth
Private Security Companies Mount Legal Battle Against Regulatory Authority Over Minimum Wage Dispute
Share This Article
Facebook Email Print
Previous Article Transfer: Middlesbrough to sell Akpom for £15m
Next Article shakahola commission Court suspends Shakahola commission after Raila sues
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

about us

We influence 20 million users and is the number one business and technology news network on the planet.

Recent Posts

  • Singer Justin Timberlake reveals Lyme disease diagnosis
  • Kenya Power warns public against conmen posing as CEO Siror
  • Kenya spared as Trump slaps new tariffs on 69 countries
  • EPL: Liverpool confirm new shirt numbers for Wirtz, Frimpong, others
  • Margaret Nduta spared from death penalty in Vietnam, handed life sentence

Recent Comments

No comments to show.
Newsunplug KenyaNewsunplug Kenya
© Newsunplug Kenya. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?