Crown Paints becomes the third company to issue a profit warning this week after TPS East Africa and Pan Africa Insurance Holdings. PHOTO | FILE
What you need to know:
Net profit for the half year to June 2014 stood at Sh109.34 million, indicating that the decline in performance was mainly in the second half of last year.
Listed paint manufacturer Crown Paints has issued a profit warning for the 2014 financial year, citing challenges in its subsidiaries in Tanzania and Rwanda.
“The group currently forecasts that earnings for financial year 2014 may be at least 25 per cent lower than those of financial year 2013. The drop is as a result of very challenging market dynamics for subsidiaries in our expansion programme within the region,” said the company in a notice to shareholders.
Crown Paints, which recently establishment a paint showroom in Kigali, plans to invest Sh228 million ($2.5 million) in Rwanda over the next five years including setting up a paint factory.
The company reported a net profit of Sh213.84 million for the financial year ending December 2013, meaning that this year’s earnings will be lower than Sh160 million.
Net profit for the half year to June 2014 stood at Sh109.34 million, indicating that the decline in performance was mainly in the second half of last year.
