Crown paint Kenya Plc #ticker:CRWN has recorded a 21.83 percent increase in net profit to Sh731 million for the year ended December 2021 attributed to an increase in revenue from contracts with customers.
The revenue rose to Sh10.7 billion in the period under review from Sh9.1 billion last year.
The profit grew from Sh600 million owing to an increase in sales in the year under review.
The paint company reported an increase in income-driven by revaluation gains on property, plant, and machinery resulting to Sh109 million in the period under review.
“The Group’s turnover for the year ended 31 December 2021 grew by 17 percent to Sh10.7 billion in comparison with the year 2020 which had a 7 percent (Sh588 million) increase to Sh9.1 billion against the year 2019,” Conrad Nyukuri, the company secretary said in a statement.
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.
The operating profit before tax, for the year ended December 31, 2021, rose by 30 percent (Sh264 million) to Sh1.1 billion compared to the year ended 31 December 2020 where a 63 percent (Sh335 million) growth to Sh863 million was attained against the previous year.
Following the outbreak of the Covid-19 pandemic in 2020, the epidemic continued to present significant challenges in 2021 to the health and business sectors, Crown Paint directors said.
The company added that the cost of production rose on the backdrop of increased cost of raw materials which pushed the cost of living high.
“In addition to resurgence of the pandemic in some key global strategic markets, the year 2022 is witnessing unfolding economic constraints ranging from volatility in the foreign exchange rates, scarcity of major foreign exchange currencies, inflation, lockdowns affecting supply chains, general shortage of commodities in the market and changes in the geopolitical environment,” added Mr Naykuri.
The Board of Directors has recommended the approval of a first and final dividend of Sh4 per share for the year ended 31 December 2021.
Source: Business Daily Africa