Paint firm returns Sh265m profit

Paint manufacturer Crown Paints has recorded a 43 per cent growth in pre-tax profit (Sh216 million) for the year ended December 31, 2015. The good earnings are despite an exchange loss of Sh265 million.

This is a significant improvement compared to last year's performance which recorded a profit of Sh151 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.