Crown Paints Kenya Plc recorded a net profit of KSh 731 Million in 2021 compared to KSh 600 Million in 2020, its audited financials for 2021 show.
The firm’s revenue from contracts with customers increased to KSh 10.7 billion in 2021, up from KSh 9.2 billion in 2020.
Crown Paints Balance Sheet size increased to KSh 7.8 billion in 2021 from KSh 5.6 billion in 2020, while pre-tax profit increased from KSh 863 Million in 2020 to KSh 1.1 billion in 2021.
As a measure of the firm’s profitability, earnings per share declined from KSh 8.42 per share in 2020 to KSh 6.85 per share in 2021.
In its commentary, Crown Paints Directors said the epidemic presented significant challenges in 2021 to the health and business sectors.
The measures instituted to control its spread remained in place but were relaxed as the year progressed.
“The strengths 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,” said the board.
Crown Paints Kenya recorded a turnover for the year ended 31st December 2021 grew by 17% or KSh1.5 billion to KSh 10.7 billion in comparison with year 2020, which had a 7% of KSh 588 million increase to KSh 9.1 billion against the year 2019.
The listed painter’s operating profit before tax for the year ended 31st December 2021 rose by 30% or KSh 264 million to KSh 1.1 billion compared to the year ended 31 December 2020, where a 63% or KSh 335 million growth to KSh 863 million was attained against the year ended 31 December 2019.
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.
In its outlook, Crown Paints says 2022 is witnessing economic constraints unfolding from volatility in the foreign exchange rates, scarcity of significant foreign exchange currencies, inflation, lockdowns affecting supply chains, general shortage of commodities in the market and changes in the geopolitical environment.
As a result of these factors, the cost of raw materials has risen, pushing the cost of living and doing business.
Crown Paints Board of Directors recommends the approval of a first and final dividend of KSh 4.00 for the 2021 financial year.