Naivas Limited, a prominent Kenyan supermarket chain, has reported impressive financial results for the nine months ending in March, demonstrating a significant increase in earnings compared to the previous year.

The Mauritian conglomerate IBL Group, which acquired a 26.3 percent stake in Naivas last year as part of a consortium, has disclosed the company's performance.

In a recent trading update, the multinational IBL Group stated, "Naivas, the leading supermarket chain in Kenya in which the group (IBL) invested during the first quarter, has generated higher profits compared to last year." This marks the first time that Naivas' profits, as an associate of IBL, are being officially reported this year.

The profits allocated to IBL amount to 184 million Mauritian Rupees (equivalent to approximately Sh553.4 million).

Based on this allocation, Naivas' total earnings for the nine-month period reached an impressive Sh2.1 billion.

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The supermarket operator has consistently achieved profitability over the years and has consequently attracted major investors who were willing to pay a significant premium to become shareholders.

According to previous disclosures, Naivas recorded sales of Sh65.1 billion in the fiscal year ending June 2021, with a net profit of Sh2 billion, representing a net margin of 3.18 percent.

This marked an improvement from the previous year when the company reported a net income of Sh1billion on sales of Sh54 billion, resulting in a net margin of 1.9 percent.

In August of last year, the founders of Naivas, the Kago family, sold an 8.5 percent stake to the IBL consortium, generating a substantial amount of $32.29 million (equivalent to Sh4.4 billion).

This transaction valued the retailer at Sh45.6 billion. The Kago family joined other stakeholders such as the International Finance Corporation (IFC), German fund DEG, private equity firms Amethis and MCB Equity Fund, in selling a combined 40 percent stake in Naivas for an impressive $151.97 million (equivalent to Sh20.9 billion).

The IBL-led consortium, which includes Proparco and DEG, reinvested in the supermarket chain. Naivas, which was established in 1990, has grown to become the largest supermarket chain in Kenya, operating more than 84 stores and employing 8,000 people as of June 2022.

While some of its competitors have faced challenges, Naivas has consistently expanded its presence.

In the previous year alone, the company opened seven new stores, increasing its total number of branches to 91 as of December 2022.

Notably, Naivas has strategically targeted busy locations, including middle-class residential neighborhoods, to cater to the needs of its growing customer base.