Portland Paints and Products Plc: Decrease in paint sales depletes revenues

Portland Paints and Products Plc recorded decreased revenues in one of its revenue-generating units, as total revenues dipped. The company reported revenues of N1.23 billion in 2020 (9 months) – 38.43% decrease compared to N1.99 billion in the corresponding period of 2019.

READ: CAP Plc set to merge with Portland Paints and Products Plc.

What you should know

Key highlights from 2020 (9 months) results

• Revenues decreased by 38.43%, from N1.99 billion to N1.23 billion YoY.
• Revenues from paints decreased to N1.22 billion, -38.72% YoY.
• Recorded revenues of N502 thousand on executed projects, +100% YoY
• Revenues from franchise/management fees increased to N7.21 million, +142.33% YoY.
• Gross profits decreased to 385.35 million, -45.43% YoY.
• Operating profit decreased to N-102.62 million, -175.89% YoY.
• Finance cost increased to N6.73 million, +51.52% YoY.
• Pre-tax profits decreased to N-106.58 million, -175.48% YoY.
• Post-tax profits decreased to N-115.45 million, -220.24% YoY.
• Earnings Per Share decreased to -15 kobo, -225% YoY.
• Total assets decreased to N1.80 billion, -9.19% YoY.
• Total liabilities decreased to N530.45 million, -12.48% YoY.
• Total equity decreased to N1.47 billion, -7.94% YoY.

(READ MORE:Big players in Paints and Coatings industry suffer 52% profit loss in the first 6 months of 2020)

Bottom Line

Portland Paints and Products Plc recorded decreased revenues in one of its revenue-generating units, as total revenues dipped.

Companies have generally recorded decreased revenues in the last three quarters mostly due to COVID-19. Portland Paints and Products Plc was unable to grow its revenue. The company also recorded a pre-tax loss in the period under consideration.