Berger Paints has released its audited accounts for the year ended December 31st 2012, with revenues increasing year on year to N2,513, 664,000. Operating profit posted at the end of the year was N284.7million compared to N381.5m posted the same period last year. The company will go on to post a post tax profit of N192million down 22% from the N244.6million posted a year earlier.
Berger Paints failed to deliver on an improved bottom line due to an increase in direct as well as operating cost. Operating Profit Margin for 2012 was 11% compared to 16% a year earlier. Berger Paints have close to zero long term loans and largely trades with its assets as well as working capital are reported in my past blog. The company also generated N255million in operating cash flows utilizing about N179million in acquiring fixed assets whilst the rest of it was used in part to pay for dividends. The company will end the year with N748million in the bank up from N701 it had in the previous year.
Berger Paints shares have mostly remained flat for the year to date and currently trades at about N10.60 per share (at the time of this post). The stock has returned a 24% in one year and trades at a multiple of 9x of its earnings. There is no significant investment in the company that assures investors of any significant growth in its bottom line.