Crown Paints and Pan Africa Insurance Holdings have issued profit warnings saying that their profits for 2014 nosedived by at least 25%.
Attributing this to unfavourable market conditions for the subsidiaries in the East African regions, the companies project a further plunge if the unspecified market conditions are not remedied. Crown Paints which prides in making decorative and automotive paints has a factory in Uganda, a showroom in Rwanda and depots in Tanzania.
The paint maker recorded a pretax profit of Khs333millon in 2013 on revenues of Kshs5.16billion. This is expected to fall when the 2014 results will be released later this year based on the prevailing market conditions.
Meanwhile Pan Africa Insurance Holdings profits after tax fell by at least 25% last year compared to the recorded figures in 2013 due to unrealistic mark-to-market gains on equity investments that failed to replicate in 2014.
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