Berger Paints grows profit by 35.4% to N197.8m

Berger Paints Nigeria Plc has posted a 35.4 percent increase in profit as a result of improved performance from manufacturing, distributing and selling of paints and allied products, analysis by Businessday has shown.

The paint company saw a 35.4 percent increase in profit at N197.8 million in December 2021, the highest since 2019, compared to N146 million in December 2020.

Revenue grew 30.5 percent to N5 billion in the full year 2021 compared to N3.83 billion in the preceding year.

The company’s three reportable segments, paints & allied products revenue, contract revenue and investment property rental income contributed N4.8 billion, N136.5 million, N4.3 million respectively to the total revenue.

Further analysis by Businessday revealed the paint company increased its cost of sales to N3.24 billion from N760.5 million in the comparable periods.

Finance cost dropped 31.4 percent to N42.5 million in the full year ended 2021 compared to N62 million in the previous year.

The company’s sale of paints and allied products rose to N4.85 billion in December 2021, compared to from N3.63 billion in the previous year.

Contract services revenue dropped to N136.5 million in December 2021 compared to N203.6 million in the preceding year.

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Income from enrolment of new distributors grew to N9 million in the year ended 2021 compared to N4.3 million in the year ended 2020.

The paint company’s administrative expenses rose to N1.24 billion in 2021 compared to N1.01 billion in the previous year.

Personnel expenses excluding remuneration of the executive directors during the period declined to N694.6 million from N718 million in the period under review.

Total assets jumped to N5.2 billion in the year ended 2021 compared to N5 billion in the year ended 2020.

Inventories increased to N1.3 billion compared to N702.3 million in the comparable periods.

However, finance income declined to N15.8 million in December 2021 from N78.8 million in December 2020.

Profit from disposal of property, plant and equipment rose to N21.2 million compared to N5.1 million in the period under review.

Net cash generated from operating activities indicates the amount of money a company brings in from its ongoing, regular business activities, such as manufacturing and selling goods or providing a service to customers dipped to N244.8 million compared to N1.37 billion in the comparable periods.

The company’s cash used in investing activities recorded a year on year loss to N72.3 million from N163.6 million.

Net cash used in financing activities is a section of a company’s cash flow statement, which shows the net flows of cash that are used to fund the company. Financing activities include transactions involving debt, equity, and dividends recorded N277 million from N193.8 million year on year loss.

Berger Paints Nigeria Plc, which commenced operation in Nigeria has grown to be a leader in the Coating and Allied Industry in Nigeria. It operate a countrywide distribution network of dealers spread in strategic locations to maintain its commitment to the innovative development and manufacture of paints and allied coatings through cutting-edge technology.

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