Corporate Press Releases
CAP Plc: Financial results for the fourth quarter and twelve months ended 31 December 2020
CAP Plc’s revenue increased 4.4% to N2.8 billion in Q4 2020, supported by strong volume growth (30.4%) across key product lines.
Chemical and Allied Products Plc (“CAP”), one of Nigeria’s leading paints and decorative companies, announced its unaudited results for the fourth quarter and twelve months ended 31 December 2020.
Commenting on the performance, Managing Director, David Wright, stated:
“CAP recorded modest top-line growth last year despite the COVID-19 lockdown in the second quarter of 2020 and protests in the fourth quarter of 2020, effectively losing 7 weeks of sales. We are encouraged by the growth in revenue which has been solely driven by underlying volume growth in line with our strategy. Alongside the rest of the world, we experienced supply chain disruptions which impacted our raw material sourcing and resulted in input costs pressures. We have embarked on initiatives focused on mitigating these disruptions and expect to see positive results in 2021.
We announced the proposed merger between CAP and Portland Paints and Products Nigeria Plc in the fourth quarter of 2020. We have received preliminary regulatory approvals and an order from the Federal High Court to hold a Court-Ordered Meeting. Merger completion is subject to shareholder approval and final regulatory approvals and we expect to conclude the merger in the first quarter of 2021.”
Financial Review: Q4 2020
Revenue increased 4.4% to N2.8 billion in Q4 2020, supported by strong volume growth (30.4%) across key product lines.
Gross profit of N1.1 billion was achieved in Q4 2020 from N1.2 billion in Q4 2019, reflecting a 13.2% decline. The decline in gross profit was due to higher input costs on account of supply chain disruptions resulting in a scarcity premium on raw materials which were in short supply.
EBIT was N475 million compared to N640 million in Q4 2019 on account of higher cost of sales. Operating expenses only increased 0.3% YoY while operating expenses/ sales improved 90 bps.
Profit Before Tax of N532 million was achieved in Q4 2020, a 28.1% decline from N739 million on account of the combined effects of the decline in operating profit mentioned above and a 42.6% reduction in net finance income given lower treasury yields compared to prior year.
Financial Review: FY 2020
Revenue increased 3.9% from N8.4 billion in FY 2019 to N8.7 billion in FY 2020, driven by strong volume growth despite the disruptions in April, May and October.
Gross profit declined 5.5% to N3.8 billion, with gross margin of 43.0%. Gross profit declined due to input cost pressures on account of currency devaluation and supply chain disruptions.
EBIT of N1.6 billion, reflecting a decline of 22.4%, with EBIT margin reducing 638 basis points from 25.2% to 18.9%. Key drivers of the reduction in EBIT are the decline in gross profit and investments in talent to strengthen the work force and drive profitable growth.
The decline in EBIT, coupled with a 41.1% decline in net finance income on account of lower investment income yields resulted in a Profit Before Tax decline of 25.5% to N1.9 billion in FY 2020. Profit Before Tax Margin declined 860 basis points to 21.7%.
Total profit for the year was N1.3 billion, a 26.0% decline from N1.7 billion reported in FY 2019. Earnings per share for the period of 182 kobo, down 26.1% from 249 kobo in FY 2019.
Free Cash Flow of N1.0 billion in FY 2020, compared to N1.5 billion in FY 2019. Free cash flow impacted by lower operating cash flows which was offset by a reduction in net capital expenditure (-58.4% decline to N113 million in FY 2020). The company continues to maintain a strong cash position (N5.8 billion) which will be deployed towards growth initiatives.
Key Financial Highlights
Corporate Press Releases
Applications across Nigeria, South Africa and Kenya now open for the 2021 Facebook Community Accelerator Program
The selected leaders will spend five months learning from experts, coaches and a customised curriculum so they can strengthen their community.
Today, Facebook is inviting community leaders from Nigeria, South Africa and Kenya to apply for the 2021 Facebook Community Accelerator Program—a program that offers participants training, mentorship and up to $50,000 USD in funds to invest in an initiative that extends their community’s positive impact.
The aim of the Community Accelerator is to help leaders of Facebook communities to harness the power of their community to turn ideas into action. The selected leaders will spend five months learning from experts, coaches and a customised curriculum so they can strengthen their community.
Lessons include community identity foundations, leading action-oriented programmes and sustainability. Participants will also receive early access to new Facebook products aimed at helping communities better manage and activate their members.
Plan an initiative
Participants will identify an important initiative that will create a positive impact on the broader world and develop a plan to mobilise their community around their goal. Initiatives will be shared with potential partners, mentors and a panel of judges for the chance to be awarded funding and receive public recognition.
Participants will then spend three months executing their initiatives. They will collaborate with advocates and leaders in the community space and work with the Facebook team to bring their ideas to life.
Says Kiran Yoliswa, Partner Management Lead, Middle East and Africa Community Partnerships at Facebook: “Facebook communities and their leaders are helping to resolve social challenges, sharing knowledge and information, while connecting with others that share their interests or passion for a cause. We’ve seen so many incredible communities from across South Africa, Kenya and Nigeria using our platform to drive change and provide support and encouragement for thousands of people, we’re excited to offer their Facebook Community leaders this program to help amplify their impact even more.”
How to apply
This program is open to communities that have a presence in Facebook Groups with leaders who are 18 years or older. Communities must have existed for over one year and must have a minimum size of 1,000 members. Applications open today, May 4 – 31, 2021.
The Community Accelerator is part of our Facebook Community Leadership Program, a global initiative that invests in people building communities. Learn more and apply here.
You can find out more about the 2020 Community Accelerator cohort and those who received additional funding here.
Corporate Press Releases
FG partners UNICEF, holds High Level Forum on Financing Safe Schools
Government representatives in conjunction with UNICEF and Safe School Initiative held a high-level forum aimed at tackling security issues in the country
In a bid to mitigate the escalating security crisis, bedeviling the country, particularly incessant kidnappings in schools which has adversely taken a toll on education, affecting about 12 million children, leading to increased School closures; representatives of government, recently held a high Level Forum, in conjunction with UNICEF and Safe School Initiative targeted at nipping the crisis in the bud.
The Opening Session of the Forum, ‘Financing Safe Schools: Creating Safe Learning Communities was chaired by the Honourable Minister of Finance, Budget and National Planning, Dr. (Mrs) Zainab Ahmed, and the Chairman of the Nigeria Governors’ Forum, His Excellency Dr. Kayode Fayemi, who gave respective opening statements after, Goodwill Messages from, former Prime Minister of the United Kingdom, Mr. Gordon Brown Hon FRSE, and the Honourable Minister of Women Affairs, Dame Pauleen Talen.
The private sector, donors, and multilateral institutions all unanimously, pledged to collaborate so as to take a holistic approach to creating safe learning communities to redress the education emergency Nigeria is facing so children can safely return to school. Other stakeholders also acknowledged that the number of ‘out of school’ children in Nigeria must be urgently addressed through sustainable policy action to avoid a social and economic disaster.
Dr. Ayoade Olatunbosun-Alakija of the Nigeria Emergency Coordination Centre who convened and organized the high level forum opened the forum, providing context and background to the impetus for the Forum as she set the stage for discussions and called for sustainable policy action during deliberations.
Other notable speakers were His Excellency Mallam Nasir El-Rufai, the Executive Governor of Kaduna State; His Excellency Aminu W. Tambuwal, Executive Governor of Sokoto State; Ambassador Mary Beth Leonard, United States Ambassador to Nigeria; Ogbeni Rauf Aregbesola, Honourable Minister of Interior (as represented by Ahmed Abubakar Audi, Commandant-General of the Nigerian Security and Civil Defence Corps); Hon. Chukwuemeka Nwajiuba – Honourable Minister of State, Education; Rtd. , National Security Adviser Gen. Leo Irabor, Chief of Defence Staff; Mr. Asue Ighodalo, Chairman, Nigerian Economic Summit Group; Mr. Peter Hawkins, UNICEF Country Representative (Nigeria); Ag. IGP Usman Alkali Baba psc, fdc, NPM, Acting Inspector General of Police; Justin W van Fleet; Executive Director, Global Business Coalition for Education; Mr. Aliyu Ahmed, Permanent Secretary (Finance), Federal Ministry of Finance Budget & National Planning; and Mr. Shehu Aliyu Shinkafi, Permanent Secretary (Special Duties), Federal Ministry of Finance, Budget and National Planning; Mrs Maryam Uwais, Senior Special Assistant to the President of Nigeria on Social Investment; UNODC Representative Oliver Stopel, Ms Aisha Garba Mohammed, Senior Education Specialist, the World Bank Group.
Also in attendance were Ambassador Catriona Laing, British High Commissioner to Nigeria; Ambassador Ihab Moustafa Awad, Egyptian Ambassador to Nigeria; and Ambassador Knut Eiliv Lein, the Norwegian Ambassador to Nigeria, Ambassador Nicolas Simard, the Acting Canadian High Commissioner, and H.E. Joanna Tarnawska, Ambassador Extraordinary and Plenipotentiary of the Republic of Poland to Nigeria; Sen. Hadi Sirika, Honourable Minister for Aviation and UNDP Resident Representative Mohammed Yahya
At the end of the forum, Stakeholders committed to work together to collaboratively plan and implement an ‘Abuja Financing for Safe Schools Compact’ which will include the following key elements:
- Commitment to develop a participatory roadmap for the design and implementation of the ‘Abuja Financing Safe Schools Compact’ to create safe learning environments.
- Collaborative and participatory planning at all levels of government and with community: All 774 local government authorities will be engaged in developing plans to implement strategies for safe learning environments.
- Oversight, governance and strategic direction from regional and national level, with insights and expertise from local, sub-national and national government along with multilateral stakeholder oversight.
- Commitment of finance, resource and expertise from across government as well as the private sector and multilaterals: to enable the development and implementation of a cross-sectoral ‘Financing Safe Schools’ compact strategy.
- Public-private partnership and other modalities: to deliver the objectives and needs of a financing safe schools initiative.
- Commitment to review: to adjust the strategy as necessary with key milestones and objectives to be developed to assess progress.
A mechanism is in place to develop the Compact over the next 3 months, involving partnership across government, private sector multilaterals and civil society. The Compact will be delivered in August 2021 to the Ministry of Finance, Budget and National Planning and other key stakeholders for approval and implementation. The Compact will comprise a strategy to finance safe schools and create safe learning communities, a finance plan to support the strategy and a roadmap for implementing the strategy.
