CAP reports 15% decline in full year pre-tax profit

Chemical and Allied Products Plc (CAP), Nigeria’s leading paints and decorative companies has announced its unaudited results for the fourth quarter and twelve months ended December 31, 2021.

The company’s full year (FY) 2021 financial highlights show revenue of N13.9 billion, higher than N8.73billion in prior year by 59percent; earnings before interest and taxes (EBIT) of N1.4 billion, with EBIT margin of 10percent; and Profit Before Tax (PBT) of N1.5 billion was down by 15percent from N1.81billion in 2020, with PBT margin of 11percent.

Total profit for the year was N1.1 billion, down by 12percent from N1.22billion in 2020; while its earnings per share (EPS) for the year stood at 136 kobo. The N19.50 per share the stock closed on Friday, January 28 represents an increase of 0.3percent year-to-date (Ytd).

Commenting on the unaudited full year performance, Managing Director, Bolarin Okunowo, stated: “We recorded several key achievements in 2021, despite the difficult operating environment.”

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“The merger with Portland Paints and Products Nigeria Plc was concluded on the 1st of July, making CAP the leading paint company in Nigeria. Significant revenue growth of 59 percent driven by strong demand for our resident products and positively impacted by additions to our portfolio following the merger,” Okunowo said.

The company said expanded its distribution network with 17 retail stores opened in the review year. It also returned N1.47 billion in form of dividends to its shareholders.

“However, we experienced significant margin compression in the earlier part of 2021 due to raw material supply challenges coupled with sustained raw material inflation. Corrective pricing actions were implemented in the fourth quarter, which improved our gross margin. The pace of recovery in raw material availability and moderation of raw material prices remain uncertain. We will continue to work closely with our suppliers to improve our sourcing capabilities and focus on production and operating efficiencies to protect margin”, Okunowo said.

Chemical and Allied Products Plc (CAP) is a leading paints and coatings company in Nigeria with globally recognised brands such as Dulux, Sandtex, Caplux and Hempel. CAP manufactures and sells decorative paints and industrial coatings.

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