Crown Berger posts Sh70 million profits

By Fredrick Obura

Paint maker, Crown Berger Kenya Limited, has announced a pre-tax profit of Sh70 million for the first half of this year.

The profit is an increase of 17.7 per cent from a profit of Sh59.5 million reported during a similar period last year.

"The high profitability is due to prudent financial planning, targeted marketing and increased demand for our high quality products due to the continued strength of the Kenyan construction sector," Crown Berger Chief Executive Officer Rakesh Rao said.

Mr Rao said the listed firm was exploring full potential of growth in the East African region.

The company, which manufactures and distributes paint, increased its net profit to Sh42.5 million during the period.

The firm’s turnover increased by 14 per cent from Sh1.2 billion last year to Sh1.4 billion this year.

performance

The cash flow of the group increased to Sh84 million from Sh20 million during the first half of this year.

The firm, which was founded in 1958, operates depots in Nairobi, Mombasa, Kisumu and Kampala, Uganda and currently has the capacity to produce one million liters of paint per month.

It has introduced low-end economy paint in the market as away of consolidating its market share by between 10 per cent and 15 per cent respectively.