Crown Paints Kenya PLC has reported a sharp rebound in annual earnings for the year ended 31 December 2025, with profit before tax nearly doubling to KShs 1.4 billion, up from KShs 787 million in 2024.

The group’s turnover rose by 19 percent to KShs 16 billion, driven by increased sales volumes, effective promotional activity and a stable currency environment that helped raw material costs and pricing remain predictable.

Total comprehensive income for the group, net of tax, jumped to KShs 893 million from KShs 490 million the prior year while profit for the year attributable to shareholders rose to KShs948 million, compared with KShs 544 million in 2024.

Basic earnings per share (EPS) for the group stood at KShs 6.66, a stromg uptick from a loss per share of KShs 0.20 in the previous year, though the company’s statement shows weighted average shares outstanding held steady at 142 million.

The company’s standalone performance mirrored the group’s trajectory. Revenue from contracts with customers increased to KShs 14.1 billion, up from KShs 11.95 billion in 2024. 

Profit before tax rose to KShs 1.02 billion, against KShs 654 million a year earlier, while profit for the year came in at KShs 590 million compared to KShs 458 million.

Stable shilling lifts earnings

Crown Paints’ board attributed the improved performance to “increased sales volumes compared to 2024 and a stable currency environment,” adding that “effective promotions and strategic product positioning” drove demand. The relatively stable shilling and raw material prices, it said, enabled consistent supply and competitive pricing.

Total assets at the group expanded modestly to KShs 9.61 billion from KShs 9.39 billion in 2024. However, total equity fell sharply to KShs 4.10 billion from KShs 6.03 billion in the prior year, largely reflecting a decline in reserves. Share capital remained unchanged at KShs 712 million.

Current liabilities stood at KShs 5.05 billion, up from KShs 3.35 billion, while non-current liabilities were reduced to KShs 462 million from KShs 917 million. Total liabilities rose to KShs 5.52 billion from KShs 4.27 billion.

Cash generation improved markedly. Net cash generated from operating activities more than tripled to KShs 1.80 billion, up from KShs 510 million. After income tax paid (KShs 410 million) and net interest payments, operating cash flow remained robust.

The group used KShs 545 million in investing activities, up from KShs 288 million in 2024, while financing activities absorbed KShs 774 million, compared with just KShs 46 million in the prior year.

Cash and cash equivalents closed the year at KShs 777 million, more than double the KShs 344 million held at the start of the period.

Dividend held flat despite profit surge

Despite the sharp rise in profitability, the board recommended a first and final dividend of KShs 3.00 per share for the 2025 financial year, unchanged from 2024. The dividend will be paid on or about 31 August 2026 to shareholders on the register as of 26 June 2026.

The decision to hold the dividend flat may raise questions among income-focused investors, though it preserves cash as the group continues to invest and manage higher current liabilities.

The register of members will close on 26 June 2026, with the annual general meeting to be held virtually the same day at 11:00 am.

Looking to 2026, management said the group was “well-positioned to sustain its growth trajectory,” citing strong brand positioning and ability to adapt to changing market conditions.

The results confirm a decisive operational recovery for one of East Africa’s best-known paint manufacturers, though analysts may scrutinise the sharp decline in total equity and the static dividend payout relative to earnings growth.

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