Crown Paints Kenya Plc Net profit for the half year ended 30th June 2023 plunged 87.2% to KSh 37 Million compared to KSh 288 million in HY 2022.This is as a weakening Kenya Shilling as well as depreciation of currencies in other regional markets where Crown Paints operates, took a toll on its bottom line. A weakening Kenya Shilling continues to affect performance of Kenya’s multinationals, including KQ whose HY 2023 Net Loss widened to KSh 21 Billion.
The airline has yet to recover from the heavy borrowings and an expansion spree of yesteryears that failed to improve its revenues.
During the HY2023 period ended 30th June 2023, the Group revenue declined by 6.2% to KSh 5.6 billion while the pre-tax profit stood at KSh 74 million compared to KSh 426 million in HY 2022, a decline of 82.6%.
The decrease in profitability, according to the Group’s Board of Directors, is attributed to increased cost of production as a result of costly inputs due to inflation and devaluation of regional currencies. In addition, the Group witnessed reduction in sales revenue as a result of slowdown in the markets in which it operates.
Crown Paints Kenya is headquartered in Kenya with operations in Uganda, Burundi, Southern Sudan, Congo and Rwanda.
Crown Paints Kenya Limited subsidiaries comprise the wholly owned Crown Berger Allied Industries Limited and Crown Buildings and Products Limited (Uganda).
The listed paints manufacturer closed its last trading day on Tuesday, August 29, 2023 at KSh 38.55 per share on the Nairobi Securities Exchange (NSE), recording a 0.1% gain over its previous closing price of KSh 38.50.
Crown Paints began the year with a share price of KSh 41.85 but has since lost 7.89% off that price valuation, ranking it 40th on the NSE in terms of year-to-date performance.
Directors of the Group have not declared any interim dividend.