Crown Paints posted a 22% growth in net profit for the year ended December 31 to Ksh.731 million from Ksh.600 million.
The growth in profitability is largely attributable to higher sales with the Group’s turnover in the period hitting Ksh.10.7 billion from Ksh.9.2 billion in 2020.
The company nevertheless said the higher turnover was partly offset by rising costs in the year.
“The strength of Crown Paints brand and our network of stakeholders and their resilience continued to yield better returns and this is hoped to remain into the foreseeable future. The increase in turnover was offset by an increase in cost of sales and general increase in operating costs due to price inflation,” the manufacturer said.
Crown Paints continues to see a tougher operating environment in 2022 driven by foreign exchange volatility, FX shortages, inflation and supply chain constraints.
“The cost of raw materials has risen, pushing the cost of living and doing business. Our company shall continue to assess its position to ensure that the core strengths of our brand and our network of stakeholders remain robust to continue delivery of modest return to our shareholders,” Crown Paints added.
