There are about five paint manufacturing companies that are currently listed on the Nigerian Stock Exchange (NSE). One of them is Meyer Plc. The company has, for many years, tried to remain relevant in the paint manufacturing sector by producing a wide array of products that are used for home decoration, office painting, road signs, industrial coatings, and more. But can it ever be king of the paint manufacturing sector?

On this week’s Nairametrics company profile, we are focusing on Meyer Plc. Get to know everything about the company, with emphasis on its business model, products, financial performance over the years, business prospects, and opportunities for investors.

About Meyer Plc

Meyer Plc was incorporated in 1960 and listed on the Nigerian Stock Exchange in 1979. For nearly sixty years, the company has been manufacturing and merchandising wide-ranging, high quality industrial/marine paints, road lining paints, architectural paints, wood paints, roof lining paints, tube coatings, and adhesives, etc.

Within the past fifty-six years, Meyer Plc has undergone a series of corporate changes and rebranding. Formerly an offshoot of Hagemeyer Nigeria Limited, its name was changed to Meyer Paints in 1994 after Dunlop Nigeria acquired majority shares in the company. But by 2003, Dunlop Nigeria Plc divested its majority shareholding. And in 2010, the company’s name was finally changed to Meyer Plc after “a new set of core investors led by Citiprops Limited” acquired controlling shares in the company.

Meanwhile, the company’s ownership structure further changed when Citiprops recently decided to  sell off all of its stakes. Greenwich Trust Limited and Greenwich Management Limited collectively acquired the shares which are valued at 35.6%.

In the meantime, Meyer Plc is  aiming to become a leader in the paint manufacturing sector. To accomplish this, the company is pioneering revolutionary trends whilst ensuring that their customers are satisfied.

Segmentation of products 

Meyer Plc’s products are segmented into four main categories, namely: decoratives, auto refinishes, industrial/marine, and wood refinishes. Some of the most popular products under each of these categories are listed below:

• Meyer Wall Satin
• Red Oxide Prime
• Meyer Flex Finish
• Meyer Wood Guard
• Ultimate Emulsion
• Cellulose Sanding Sealer
• Autobase
• Bright Aluminium etc.

Here are some of the company’s top executives and board of directors

Akintunde Olukayode Falowo: He is Meyer Plc’s non-executive Chairman. An experienced stockbroker, Falowo has more than twenty years’ postgraduate experience in the field of finance/investment banking.

Falowo studied at the Obafemi Awolowo University (OAU), Ife, graduating with a Bachelors of Science degree in Agricultural Engineering. He also studied for his MBA at the University of Benin. Also, he is a distinguished Fellow of the Chartered Institute of Stockbrokers, a Member of the Nigerian Institute of Management, Member of the Lagos Chamber of Commerce and Industry, etc.

He joined Meyer Plc in 2010 as a non-executive director. Asides this role, he is also the Managing Director/CEO of Greenwich Trust Limited.

Adeola Omosebi: Omosebi is the current Managing Director of Meyer Plc. His professional experience spans 25 years across sectors like financial services, oil and gas, and manufacturing. For about fifteen years, he held various top executive positions in notable banks such as Sterling Bank Plc and the now defunct Gulf Bank of Nigeria Plc.

He joined Meyer Plc in 2010 as the Finance Director, and by 2012 became the company’s Chief Executive Officer, a position he held for two years before resigning and relocating to be with his family abroad.

He once again became the company’s Managing Director in February 2018.
Omosebi has a Master’s in Business Administration from the University of Uyo, Calabar Nigeria. He is also a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN).

Bamidele Akinola: He is an Executive Director and the immediate past Managing Director. He became the company’s Managing Director in October 2016 and held the position till February 2018. Akinola has over 23 years of professional experience, having spent fifteen years in Cadbury Nigeria Plc starting from 1995. He also had stints at Jetstar Consulting Limited, UAC Foods Limited, and Dansa Foods Limited.

The company’s target market

Paints manufactured by Meyer Plc are used by both private and industrial customers; however, judging from information available on its website, it is apparent that its biggest customers include companies in the oil and gas, financial services, telecoms, manufacturing and industrial sectors. Examples of these companies include: MTN, Dangote Group, British American Tobacco, Oando, Access Bank etc. They are also patronised by both the Federal and Lagos State Governments, as well as agencies of Government such as the Federal Airport Authority of Nigeria (FAAN).

A look at Meyer Plc’s competitors

Meyer Plc is in competition with the following companies: Cap Plc, Berger Paints Nigeria Plc, Paints & Coatings Manufacturers Nigeria Plc, Portland Paints & Products Nigeria Plc, and Premier Paints Plc. Each of these companies are into the manufacturing and marketing of similar products as Meyer Plc.

Below are these companies’ unaudited financial highlights for the period ended September 30th 2018:

• Cap Plc: Revenue of ₦5.4 billion and PAT of ₦1.2 billion.
• Berger Paint Nigeria Plc: Revenue of ₦2.4 billion and PAT of ₦181.6 million.
• Portland Paints & Products Nigeria Plc: Revenue of ₦1.9 billion and PAT of ₦126.1 million.
• Premier Paints Plc: Revenue of ₦125.7 million and a loss after tax of ₦57.9 million.
• Meyer Plc: Revenue of ₦752.4 million and PAT of ₦186.1 million.

Based on this comparison, it is obvious that Meyer Plc is not among the top three  players in the paint/chemical industry in Nigeria. Apparently, the company has been affected by economic challenges in recent years, which resulted in irregular revenues and even  losses.

But all these notwithstanding, Meyer Plc is hopeful for a brighter future in the market. In a written address by the company’s Chairman as contained in the 2017 financial report, Mr Falowo, said that Meyer Plc is “prospecting for foreign technical partnership to strengthen their technical capability and open business to untapped opportunities in the industries.”

It is yet to be seen whether this technical partnership has taken place, and the most importantly, if it can help revitalise the struggling company.