Crown Paints first half net profit up 51pc on lower tax

Firm’s earn­ings rise to Sh60m from Sh39m

Business Daily (Kenya) - - CORPORATE NEWS -

Crown Paints has re­ported a 51.6 per cent jump in the half year net profit, helped by a lower tax bill.

The com­pany’s net earn­ings for six months ended June stood at Sh60.4 mil­lion com­pared to Sh39.8 mil­lion a year ear­lier.

This came as its cur­rent tax bill dropped 18.5 per cent to Sh49.6 mil­lion, boost­ing the bot­tom-line as the pre-tax earn­ings ex­panded at a slower rate of 9.2 per cent to Sh110.1 mil­lion.

Crown’s sales rose 5.5 per cent to Sh3.7 bil­lion. The com­pany, which did not de­tail its ex­penses, says the cost of raw ma­te­ri­als in­creased in the re­view pe­riod and is ex­pected to im­pact prof­itabil­ity in the full year. The paints maker plans to buy back its own shares in the short term.

Crown says it also plans to be trad­ing its own stock, mean­ing it will make a profit by sell­ing shares to new in­vestors at a price it be­lieves will be above the mar­ket rate.

News of the share buy­back has seen the com­pany’s stock rally to trade at the cur­rent highs of Sh78, nearly dou­bling since the start of the year when it stood at Sh42.

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