Crown Paints held off costs to post a Sh824 million profit for the year ended December 2022 from Sh731 million the previous period.
The 12.7 percent growth in earnings is mainly attributable to higher revenues, climbing to Sh11.4 billion from Sh10.7 billion.
However, high costs trimmed the paint maker’s operating profit by five percent to Sh1.07 billion. The manufacturer’s tax bill partly offset this, dropping to Sh249 million from Sh393 million.
“This is due to unfavourable foreign exchange rates, high cost of raw materials and the slowdown in economic activities during the year. Crown Paints was not spared and the high cost of raw materials led to an increase in production costs and hence a decrease in profit margins,” Crown Paints said Thursday.
But, the manufacturer sees the operating environment improving this year.
Crown Paints held off costs to post a Sh824 million profit for the year ended December 2022 from Sh731 million the previous period.
The 12.7 percent growth in earnings is mainly attributable to higher revenues, climbing to Sh11.4 billion from Sh10.7 billion.
However, high costs trimmed the paint maker’s operating profit by five percent to Sh1.07 billion. The manufacturer’s tax bill partly offset this, dropping to Sh249 million from Sh393 million.
“This is due to unfavourable foreign exchange rates, high cost of raw materials and the slowdown in economic activities during the year. Crown Paints was not spared and the high cost of raw materials led to an increase in production costs and hence a decrease in profit margins,” Crown Paints said Thursday.
“The board is optimistic that the business of the Group will improve in 2023 as world economies are improving,” the company added.
The board of Crown Paints has recommended a final dividend of Sh4 per share, a similar payout in 2021.
