Crown Paints profit rises 13pc to Sh824m

Crown Paints broke costs to record a profit of Sh824m for the year ending December 2022 from Sh731m in the previous period.

Profit growth of 12.7 per cent was mainly due to higher revenue, which jumped to Sh11.4 billion from Sh10.7 billion.

However, higher costs slashed the paint maker’s operating profit by five per cent, to Sh1.07 billion. The manufacturer’s tax bill partially offset this, falling to Sh249m from Sh393m.

This is due to unfavorable exchange rates, high cost of raw materials, and slowdown in economic activities during the year. Crown Paints said on Thursday that Crown Paints did not save and the high cost of raw materials led to an increase in production costs and thus lower profit margins.

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But the manufacturer sees the operating environment getting better this year.

The company added, “The board of directors is optimistic that the group’s business will improve in 2023 as the world’s economies improve.”

Crown Paints’ board of directors has recommended a final dividend of Sh4 per share, a similar amount, in 2021.

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