Nairobi Business Ventures PLC (NBV) has announced its financial results for the six-month period ended 30th September 2025, reflecting a challenging operating environment that impacted overall performance. The Group recorded a net profit of KES 78.28 million, representing a decline of 20.96% compared to the prior corresponding period. This was accompanied by a significant contraction in revenue, with sales decreasing by 50% to KES 137.5 million from KES 280.5 million in the previous year. The downturn in financial performance is mainly attributed to adverse market conditions that exerted considerable pressure across several of the Group’s operating divisions.
The Trading Division experienced pronounced headwinds during the period, characterized by subdued market activity and intensified competitive pressures, which collectively led to a compression of profit margins. In a strategic response aimed at mitigating further losses, management made the decision to temporarily pause trading activities. Concurrently, a rigorous evaluation of new trading opportunities and potential lines of business is underway, with the objective of establishing a more robust and sustainable foundation for future value creation.
Similarly, the Truck Maintenance Division encountered considerable operational challenges, and in response, management is actively pursuing new strategic partnerships and working to broaden the division’s technical competencies. This initiative is designed to expand the division’s service capabilities to encompass a wider array of vehicle brands, thereby diversifying its revenue streams and enhancing its long-term market resilience.
In contrast to the performance of the other divisions, the Aviation Division delivered an improved operational result during the period under review. This positive outcome was underpinned by a portfolio of stable contractual agreements and deliberate, ongoing investments in both capital equipment and human capital development.
NBV’s Strategic Initiative and Future Outlook
Beyond the operational performance, the Board is proactively reviewing strategic opportunities to optimise the Group’s asset portfolio. A key focus in this regard is the potential development of Delta Cement’s 28-acre land parcel adjacent to Mombasa Road. With the original cement project now considered unlikely to proceed, this prime real estate asset is viewed as holding significant potential for alternative development to generate future cash flows for the business. NBV’s Management remains focused on securing new contracts across the Group’s operations to ensure the full utilization of existing facilities and infrastructure.
Looking forward, NBV intends to pursue opportunities within the Trading Division selectively, particularly as market conditions show indications of improvement. A pivotal factor in this outlook is the anticipated easing of interest rates, which is expected to contribute to healthier trading margins and a more conducive environment for scaled activity.
The Board maintains a cautiously optimistic outlook, confident that the collective impact of these strategic and operational initiatives will yield positive outcomes for all stakeholders. However, in light of NBVs financial performance during the period and the need to conserve capital to fund its strategic priorities, the Board of Directors has determined that no dividend will be declared for the six-month period ended 30th September 2025.
In trading at the Nairobi Securities Exchange, NBV (NSE: NBV) has shed 25.9% year-to-date and shed 29.1% over the last one year, with current share price at KES 1.49. The firm’s market capitalization stands at KES 2.02 billion, slightly above the firm’s shareholders equity of KES 1.8B.
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