CAP’s full-year profit rises to N2.5bn, highest in 13 years

Chemical and Allied Products (CAP) Plc, a paint and coating company in Nigeria, has reported its highest profit in at least 13 years, data compiled by BusinessDay shows.

The company’s latest financial statement showed that its after-tax profit increased to N2.5 billion last year from N2.37 billion in 2022.

This was majorly driven by the company’s financial income, which rose to N681 million from N381 million.

The growth of this increase can be attributed to the company’s interest income on short-term bank deposits, interest income on finance leases, and exchange gain, which grew to N308 million from N171 million, N3.5 million from N3 million and N369 million from N207 million respectively.

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The manufacturer’s revenue grew to N23.8 billion, up 23 percent from N19.2 billion. The total revenue of N23.8 billion was driven mainly by sales from paint products which contributed N23.7 billion while N96 million was obtained from revenue from services in the full year of 2023.

Further analysis of the statement shows the company made a profit margin of 10.5 percent, showing how efficient the company is at managing its costs relative to its revenue.

Its sales margin rose to 37.8 percent on every unit of product or services the company sold as of 2023. CAP Plc’s cost of sales increased to N14.8 billion, up 28 percent from N11.5 billion.

Raw material consumed, royalty fees, and staff costs excluding directors’ emoluments consumed 93 percent of the cost incurred in production during the period.

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The company’s gross profit surged by 18 percent to N9 billion in 2023 from N7.6 billion in 2022.

Its operating profit grew to N3.2 billion, from N3 billion. The firm’s net cash flow generated from operating activities increased by 30 percent to N4.53 billion from N3.48 billion.

Net cash flows used in investing activities stood at N327 million from a negative cash flow of N540 million.

The firm’s cash and cash equivalents at the end of the period rose to N4.99 billion, up 32 percent from N3.76 billion in the period reviewed.

CAP Plc’s basic and diluted earnings per share attributable to equity holders increased to N309 in 2023 from N292.