Naivas posted a KSh 1.9 billion in profit after tax for the year ended June 2024 – a 19.6% decrease from KSh 2.3 billion reported in the same period in 2023.

• The retailer saw sales increase by 3.6% to KSh 91.9 billion from KSh 88.7 billion recorded in 2023, a consistent trend since 2020.
• Total assets decreased mildly by 0.3% to KSh 31.3 billion from KSh 31.4 billion in 2023 with liabilities shrinking 1.25 to KSh 24.4 billion.
• According to the annual report by the Mauritian Conglomerate, IBL Group, which owns a majority stake in Naivas, expenses shot up 4.2% to KSh 90.2 billion in the period, taking a toll on the income.

“Naivas has shown strong growth, despite facing challenges such as the depreciation of the Kenyan shilling, some political unrest and a very competitive retail landscape,” said IBL Group CEO Arnaud Lagesse in the annual report for 2024.

The IBL Group had more than 50% of its sales derived from operations outside of Mauritius for the first time. About 35% of the total revenue was generated by the Commercial & Distribution cluster in East Africa, up from zero in FY 2023 following the consolidation of Naivas and Harley’s.

In the same period, 44% of revenue stemmed from the Commercial & Distribution cluster in the Indian Ocean which the group attributes to strong organic growth in existing businesses.

Naivas’ Rapid Expansion

The retailer has been aggressive in its retail network over the years, taking up prime spaces, pushing up total stores to 106 across the country to become one of the biggest retailers in Kenya.

“It has continued to expand dynamically, with a retail network now spanning 106 outlets in prime locations across Kenya,” he added.

Naivas’ growth comes amid other supermarket lines including Uchumi, Tuskys and Nakumatt grappling with bankruptcy stemming from mismanagement and larger debts, leading to their closures within short periods. Naivas now faces stiff competition from Quickmart and Carrefour, all upping their online and physical reach.

In August 2023, IBL Group through its subsidiary, Mambo Retail  acquired 40% in Naivas limited. Earlier in July,  Mambo had acquired an additional 11% stake in Naivas, obtaining control over the retailer – 51%. IBL holds 73.2% stake in Mambo.