Crown Paints Chief Executive Officer Rakesh Rao. He says the company's
premium market now accounts for 60 per cent of the demand portfolio.
PHOTO/FILE
NATION
A rise in demand for paints by the
real estate sector following the peaceful conclusion of the March 4
elections saw Crown Paints record a 12 per cent jump in after-tax profit
in the half year.
The paint maker’s profit after tax
rose to Sh85.9 million in the six months to June 2013, from Sh76.4
million in the same period last year.
Turnover rose to
Sh2.4 billion in the review, a 17 per cent rise from Sh2.1 billion last
year, owing to better performance by the firm’s subsidiaries.
The
paint maker’s chief executive officer, Mr Rakesh Rao, said sales surged
in the past few months, especially in the firm’s premium category as it
targets the rising fashion and style-conscious consumer in the growing
property sector.
“Our premium market now accounts for 60 per cent of our demand portfolio, signifying strong demand. This has seen our sales cross the half-a-billion shillings per month mark for the first time,” Mr Rao said.
He noted that sales volumes have grown from 1.5 million litres per month last year to 2.1 million litres monthly currently.
The company has, this year alone, launched four new paint products, all water-based and environmentally friendly.
“We have a positive outlook for the second half of the year given the current state of the construction industry,” Mr Rao said.
The firm expects that turnover for the full year period will be 20 per cent over and above the Sh4.4 billion it posted in the 2012 financial year if the current of rising sales is sustained.
The Kenya National Bureau of Statistics data show the construction industry grew by 13.5 per cent in the first quarter of 2013 compared to 3.1 per cent growth in a similar period in 2012.
Increasing
activities in the construction sector is attributable to the declining
in interest has stimulated investment in the sector.
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