Crown paints has reported an improvement in the sale of its products in the first half of this year. The company’s six months revenue rose by 25% to KSh4.9 billion from KSh3.9 billion in the same period last year. According to its financial statement, Crown paints suffered from a high cost of production due to pandemic-related restrictions which led to increased price of raw materials and higher cost of transportation.
The top paints manufacturer in East Africa reported KSh339 million half-year net profit for the period that ended on 30th June 2021, a 34% rise from KSh253 million half-year net profit posted at the end of 30th June 2020.
In the six months to June, Crown paints expanded its total assets by 17% to KSh6.6 billion from KSh5.6 billion at the start of the year. Total liabilities also increased by 20% in the first half of 2021 to KSh4.5 billion from KSh3.7 billion at the start of the year.
The manufacturer expects improved financial performance in the foreseeable future supported by its brand and its network of stakeholders and loyal customers. Crown Paints board of directors did not recommend a dividend for the half-year period that ended on 30th June 2021.
The paints company raised KSh642.7 million from a rights issue in June this year and it plans to use the funds to lower its debt which has risen beyond sustainable levels. Additionally, the company will use some of the money for expansion projects in the East African region.
Also read: Manufacturer Crown Paints’ KSh711 Million Rights Issue to Begin Trading on 10th June 2021
