This archive report was first published on 22 August 2019.
On August 22, 2019, Crown Paints reported a decline in its half-year net profit, despite a significant increase in revenues.
The paint maker's net profit stood at Sh29.2 million in the period compared with Sh40.7 million the corresponding period last year.
According to the company's financial statement, its revenues jumped 12.77 percent to Sh4.37 billion in the period from Sh3.87 billion a year earlier.
However, the firm's tax expense jumped 55.42 percent to Sh77.1 million in the period from Sh49.6 million a year earlier.
Crown Paints CEO Rakesh Rao attributed the decline in profit to the increased tax expense, saying the company is renewing its focus on the low-end segment of the paint market.
Mr Rao stated that the company is launching a new economy range for low-cost housing sectors, which has received a positive response from the market.
He also expressed the company's intention to increase its market share in the high-end segment to 65 percent and 35 percent in the premium segment in a year.
Early last year, the Nairobi Securities Exchange-listed firm warned paint prices could go up locally between five and seven percent, citing rising prices of key raw materials.
