THE PROMISE IN KENYA'S CROWN PAINTS LTD

When by June last year, Kenya's Crown Paints ltd, ended with profit of Kes 2.88 on every Kes 100 income, it ended the full year with a far higher Kes 3.70 gain on every Kes 100 income.

Now, according to figures released by company secretary, Conrad Nyukuri, it has returned Kes 2.98 gain on Kes 100 income by June this year, will this lead to another far higher year end figure?

The company management think it should just like it did last even though fortunes in Kenya have been affected especially in the months to recent presidential election, the political climate was not favourable or encouraging for business and investment.

Crown Paints revenue had increased by 5.56% to Kes 3700.8m in the 2017 first half and because of lower overall cost growth, the profit before tax recorded came to Kes 110.1m, up 9.12% on June 2016 figure.

This was in spite of increased cost of raw materials, says Nyukuri adding that this was still expected to apply pressure on the bottom line.

However, the Kenyan market was expected to return to first quarter more encouraging trend once the political dust finally settles.

If this does not happen then, the chances are that the promise in the half year figures will not be met. This is because, hinted Nyukuri, business in other nations in the regional market, Rwanda, Uganda and Tanzania will most likely remain slow.

Bank on one thing though: Crown Paints may not have any issues with liquidity as its working capital rose from Kes 531.5m by December 2016 to Kes 613.2m.

CROWN PAINTS: Kes M Half year
                               2017.             2016
Revenue.             3,700.8.         3,505.8
Profit before tax   110.1.             100.9
Profit margin %.    2.98.                2.88
Working capital.  613.2.             531.5

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