Crown Paints Kenya Plc Net earnings improved to KSh 599.5 Million at the close of the financial year ending 31st December 2020 from KSh 323 Million over the same period in 2019, an increase of 85%.
This was due to recovery of the construction business in the third and fourth quarter of last year after lifting on the first pandemic lockdown measures, which lifted its bottom lines.
The paints manufacturer also saw its pre-tax profit rise to KSh 862.6 Million in 2020 from KSh 527.9 Million at the end of 31st December 2019.
Its balance sheet size grew marginally from KSh 5.5 to KSh 5.6 Billion during the period under consideration.
Total Comprehensive Income net of tax improved from KSh 323.2 Million in 2019 to KSh 602.2 Million at the close of last year.
Earnings per Share increased to KSh 8.42 from KSh 4.54 during the period under review.
Crown paints turnover for the year ended 31st December 2020 grew by 7% or KSh 588 Million to KSh 9 Billion.
Crown paints recovers from lockdown measures
Due to the first COVID-19 lockdown measures in April 2020, the firm closed down its business in Rwanda and Uganda while Kenya remained open despite the low business.
The initial lockdown had adverse effects on the business, including a shortage of materials inflows, leading to a rise in raw material prices and a temporary lack of several of the firm’s products in the market.
Unlike other sectors, the painting sector of the construction industry saw the third and fourth quarters of 2020 being favourable.
Business activity picked up due to heightened residential repairs and improvements, leading to Crown Paints delivering a growth of 63% to its bottom line.
With the pandemic still on the horizon, the paint maker relies on its strong brand and network of shareholders to deliver even better returns in 2021. The firm intends to raise KSh 711.8 Million through a rights issue to power its growth engines.
The Board of Directors of the paints manufacturer has not recommended payment of any dividend.