Paint manufacturer Crown Paints has recorded a 43 per cent growth in pre-tax profit. The rise saw Crown Paint’s profit before tax stand at Sh. 216 million for the full year ended December 2015.
In the 2014 full financial year, Crown Paints had posted a profit of Sh. 151 million.
Strikingly, the rise in profits in 2015 came despite the firm recording an exchange loss of Sh. 265 million.
Crown Paints Chief Executive Officer Rakesh Rao attributed the improved performance to a robust construction industry in the region, particularly in Kenya.
The company’s turnover registered a 12 per cent growth to Sh6.7 billion from last year Sh6 billion. The group continued with higher liquidity and maintenance of reasonable net working capital.
“Cash flows generated from operations improved to Sh648 million, compared to previous year of negative Sh9 million,” Rao added. He decried the devaluation of the region’s currencies, which affected the performance of the sector.