Isuzu East Africa, the motor vehicle dealer, rewarded its shareholders with a record Kshs 1.0 bn dividend at the conclusion of the fiscal year in March 2023. This substantial payout brought significant gains to its stakeholders, including Isuzu Motors, based in Yokohama, Japan. Centum Investment Company Plc, holding a 17.8% stake in the dealership specializing in the sale of trucks, buses, pick-ups, and SUVs, disclosed receiving a dividend of Kshs 180.5 mn during the review period.
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The dividend distribution included Isuzu Motors, which possesses a majority stake of 57.7%, and Itochu Corporation, holding 4.5%. Additionally, the State-owned Kenya Development Corporation owns a 20.0% stake in Isuzu. As a private company, Isuzu does not disclose its financial results to the public. Nevertheless, Centum’s disclosures indicate an impressive improvement in profitability and dividend distribution over the past five years.
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The latest dividend payout demonstrates an impressive compound annual growth rate of 49.4% since the Kshs 136.0 mn distribution in March 2019 and a 32.5% increase from Kshs 754.6 mn dividend payout in 2022. Despite challenges posed by the Covid-19 pandemic, Isuzu remained one of Centum’s portfolio companies that consistently provided dividends, bucking the trend of many companies suspending payouts due to reduced sales and weaker earnings. Centum expressed openness to selling its stake in Isuzu if a compelling offer arises, stating its commitment to maximizing value creation. The company values its Isuzu stake at approximately Kshs 3.0 bn, reflecting the remarkable success and growth of the motor vehicle dealer.
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