- The profit grew from Sh600 million owing to an increase in sales in the year under review.
- The increase in turnover was offset by an increase in the cost of sales and the general increase in operating costs due to price inflation.
- The operating profit before tax, for the year ended 31 December 2021 rose by 30 percent (Sh264 million) to Sh1.1 billion compared to the year ended 31 December 2020.
Crown paint Kenya Plc #ticker:CRWN recorded a 21.8 percent increase in net profit to Sh731 million in the year ended December, driven by higher sales.
The company had posted a net income of Sh600 million the year before.
Crown Paints declared a dividend of Sh4 per share or a total of Sh568 million, marking a return to cash returns for shareholders.
The company’s issued shares doubled to 142 million after a rights issue last year which raised Sh642.7 million.
The paints manufacturer had gone for two years without declaring dividends, having made a payout of Sh0.6 per share for the year ended December 2018 when it had 71 million shares.
The company’s revenue rose 16.7 percent to Sh10.7 billion last year from Sh9.1 billion in 2020. Crown Paints did not disclose its expenses.
It however said it incurred rising costs, which have jumped further this year.
“In addition to resurgence of the pandemic in some key global strategic markets, the year 2022 is witnessing unfolding economic constraints ranging from volatility in the foreign exchange rates, scarcity of major foreign exchange currencies, inflation, lockdowns affecting supply chains, general shortage of commodities in the market and changes in the geopolitical environment,” the firm said.
“As a result of these factors, the cost of raw material has risen pushing the cost of living and doing business.”
The local currency has depreciated more than six percent against the US dollar in the past 12 months, raising the cost of raw materials for manufacturers.
Importers have also complained of a shortage of dollars which is the primary currency through which international transactions are settled.
Traders say they now require days to weeks to obtain the dollars they need, with some banks resorting to rationing the hard currency.
Kenya Bankers Association (KBA) has blamed the crisis on heightened demand for dollars which has outstripped supply.