Crown Paints profit up 46 per cent

By Jackson Okoth

Paint manufacturer Crown Paints Ltd has posted a 46 per cent increase in pre-tax profit to Sh110 million for the six months ended June, 30.  This is compared to Sh75 million made over a similar period last year. This improved performance is attributed to contributions from its subsidiaries.

The company’s turnover increased by 16.5 per cent from Sh1.8 billion to Sh2.1 billion while its net margin improved by 5.2 per cent to Sh76 million from Sh45.8 million the previous period.

“We are already seeing a fall in interest rates and a stable exchange rate, which provides a positive outlook for the rest of the year,” said Rakesh Rao, Crown Paints chief executive officer (pictured).

He made these remarks while presenting the company’s half-year results for this year.

The company is relying on Teflon surface protector, which has been blended with its Matt Emulsion paints, to drive up sales. “This is the only washable paint that gives a stain free finish. It is especially ideal for the hot coastal regions where the lifespan of ordinary paints is short,” said Rao. On its regional expansion plans, Crown paints plans to invest close to Sh250 million to build a manufacturing plant in Tanzania.

 It is also marketing the Regal brand, the second largest player in Uganda’s paints space.  “ We are currently exporting to South Sudan, Rwanda-which is one of the most innovative and premium markets, Burundi and also getting good market responses in Democratic Republic of Congo,” said Rao.

The company’s total assets dropped marginally from Sh 2.4 billion to Sh2.2 billion during the period under review. This is attributed to disposal of some non-performing assets as well as depreciations costs.