Crown Paints issues profit warning

Manufacturer Crown Paints has become the latest firm listed on the Nairobi Securities Exchange (NSE) to issue a profit warning on expected 2022 full-year results.

In its profit warning notice, the company says higher costs will be the main driver of the below par profits in the year even as the board retains optimism on 2023 business prospects.

“The drop in the Group’s performance is mainly attributed to the increased cost of raw materials, volatility in foreign exchange rates and the slowdown in economic activities during the year,” the company noted.

Crown Paints joins industry peer Bamburi Cement, Sameer and the NSE in issuing the profit fall notice on expected 2022 full-year results.

Other firms to issue similar notices at the beginning of the year included Kakuzi, Centum Real Estate and the Unga Group.

Crown Paints posted a 22 per cent growth in profit for the year 2021 on higher sales to Ksh.731 million.

The manufacturer’s bottom line nevertheless took a hit from higher costs which were linked to inflation, foreign exchange volatility & shortages and supply chain constraints.