Centum Investment Company Plc has issued a profit warning, projecting a decline of at least 25 percent in net earnings for the financial year ended March 31, 2025, compared to the previous year.

In a notice filed with the Nairobi Securities Exchange (NSE), Centum attributed the expected drop to lower fair value gains from its investment properties — a key component of its earnings, especially under International Financial Reporting Standards (IFRS).

“The variance in the performance is attributable to a decline in the fair value gain on investment property held in our portfolio,” said Centum’s Company Secretary, Fred Murimi, in the official statement.

Despite the warning, the firm clarified that the drop is non-cash in nature, meaning it stems from accounting revaluations rather than an actual loss in cash or operational income. Under IFRS, companies are required to revalue their investment property portfolios annually, and any unrealized gains or losses are reflected in the profit and loss statements.

The firm emphasized that its cash flows and day-to-day operations remain stable, and that the revaluation impact does not affect its ability to meet financial obligations or fund ongoing projects.

Centum’s diverse portfolio spans across real estate, private equity, and marketable securities, with significant interests in Two Rivers Development, Longhorn Publishers, and NAS Servair, among others.

This is the second time in three years that Centum has issued a profit warning, underlining the volatility and accounting sensitivity of its real estate-heavy investment approach.

Analysts say the announcement could affect investor sentiment in the short term but remains a reflection of market-based valuation adjustments rather than underlying business weakness.

Centum is expected to release its full-year audited financial results later in July.