Crown Paints on Friday reported a net profit of Sh233.4 million, a significant increase from the previous year’s Sh34.2 million.
Chief executive Rakesh Rao says sales was mainly buoyed by the Kisumu plant which serves the Western region and the Rift Valley.
Crown Paints’ #ticker:BERG investment in a Sh400 million factory in Kisumu has paid off with the manufacturer crediting the plant, which opened in January 2016, with the near seven-fold growth in its full-year net profit.
The firm, which is listed on the Nairobi bourse, on Friday reported a net profit of Sh233.4 million, a significant increase from the previous year’s Sh34.2 million.
Turnover increased by Sh610 million to close the period under review at Sh7.3 billion.
Chief executive Rakesh Rao says sales was mainly buoyed by the Kisumu plant which serves the Western region and the Rift Valley.
“Over the past decade we have seen a lot of growth in Kisumu and its environs. I am talking about places such as Eldoret and Kisii.
‘‘That is why we made the strategic decision to build the factor there,” he said during an interview Friday.
“We were previously serving this region from Nairobi. This proved inadequate due to many logistical issues. Our investment decision has proven to be spot on since this market contributed about Sh2 billion of our revenues last year.”
Other parts of Kenya contributed about Sh4.5 billion while its Uganda, Tanzania and Rwanda units – where the company has also expanded its capacity – brought in about Sh800 million.
Mr Rao said that sales were also boosted by the launch of four new products last year.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
