Paint maker Crown Berger has recorded a 39 per cent growth in its half-year pre-tax profit results for 2007.
The profit increased to Sh64 million for the period ending June 30th, up from the Sh46 million recorded at the same period last year. Turnover grew by 25 per cent to Sh1.06 billion over the same period, after the company’s decision to cede management of its tin manufacturing unit, Unibilt Limited to a third party.
Product reviews and changes in the management structure, implemented as the first phase of the company’s strategic plan, were also given as reasons for the improved performance.
“We are encouraged that our strategy is working. We look to further prospects of trading both in Kenya and the regional markets for the remaining quarters,” said the firm’s chief executive, Rakesh Rao.
“The review of our product mix in order to find a balance for each market segment is a continuous process,” he added.
Lately, the growing demand for paints in the region and the boom in the housing industry has been good for paint makers.
Share of revenue
The decorative paints segment contributed 87 per cent of Crown Berger’s total revenue, while industrial and automotive paints accounted for seven per cent. Meanwhile, company plans to venture into marine paints and road marking products. Mr Rao also revealed wider expansion plans to cover Rwanda, Ethiopia and Sudan.