Berger Paint, one of Nigeria’s leading paint manufacturers, has recorded a 102 percent surge in profit to N184.19 million in the first quarter of 2023.
Data sourced from the firm’s financials showed the firm recorded a profit after tax of N184.2 million in the first quarter of 2023, a significant jump from N91 million recorded in the previous quarter of 2022.
The firm also reported an 11.1 percent growth in revenue, reaching N1.83 billion in the first quarter of 2023 compared to N1.65 billion recorded in the same quarter of the previous year.
Income tax rose by 102 percent to N86.7 million in the first quarter of 2023 from N42.8 million in the corresponding period of 2022.
The firm’s cost of sales decreased to N1.23 billion in the first quarter of 2023 while operating expenses also saw a decline of 9.17 percent, amounting to N358.2 million.
Cash generated from operating activities recorded a profit of N309.7 million in the first quarter of 2023, a significant turnaround from a loss of N19.73 million recorded in the same quarter of 2022.
Net cash used in investing activities resulted in a loss of N8.46 million in the first quarter of 2023, compared to a loss of N7.77 million in the same quarter of 2022.
Similarly, net cash used in financing activities recorded a loss of N19.86 million in the first quarter of 2023, compared to a loss of N36.44 million in the corresponding quarter of the previous year.
Despite the mixed results in cash flow, Berger Paints witnessed an increase in cash and cash equivalents, which rose by 405.7 percent to N777.2 million on 31 March 2023 from N153.69 billion recorded in the same period of 2022.
During the firm’s last Annual General Meeting, shareholders approved the payment of N202,876,413 as dividend at the rate of 70 kobo per share as against 40 kobo paid in the preceding year while the appointment of Alaba Fagun as the managing director and chief executive officer unanimously approved at the meeting.
Abi Ayida, chairman, of Berger Paints said the paint manufacturer would not rest on its oars.
“I think our performance speaks for itself. We accept the commendations but we are not satisfied. We are driving the company to do better. Last year was a very difficult year, the rise in input cost would have sunk most companies but we are well positioned to meet whatever challenges come our way because we think about how to move the company forward,” Ayida said.
Speaking about the setting up of a new subsidiary called Swift Painting, Ayida said that it would be a valued added service, designed to be faster and more consistent than the manual painting process.
Alaba Fagun, managing director and chief executive officer of Berger Paints noted that the challenges of the business environment had prompted a dynamic strategic approach of re-engineering the Company’s goals to achieve more with less.
“The industry space is still common with challenges such as forex scarcity, inflation, security, high cost of operations, high importation of foreign products and inadequate standardization causing influx of substandard products. We expect these challenges to be addressed in the long term.
“Notwithstanding these challenges, Berger is not relenting in delivering value to its shareholders, quality to customers and rewarding its employees and partners. With a historical growth in year-on-year revenue figures, we are committed to the trend and guarantee that our investments in people and technology would ensure sustainable value optimisation and satisfaction of all stakeholders,” said Fagun.