Chemical and Allied Products Plc (“CAP”), one of Nigeria’s leading paints and decorative companies, announced its audited results for the year ended 31 December 2020.
Highlights
- 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 5.8% to N3.7 billion, with gross margin of 42.8%. Gross profit decline due to input cost pressures on account of currency devaluation and supply chain disruptions.
- EBIT lower at N1.6 billion, largely on account of the decline in gross profit, investments in talent to strengthen the work force and fixed operating cost base despite losing 7 weeks of sales.
- Net finance income declined 41.3% due to lower investment income yields in line with the interest rate environment.
- Profit Before Tax declined by 29.1% in FY 2020 on account of the combined effects of lost sales during lockdown, devaluation, and supply chain disruptions.
- Total profit for the year was N1.2 billion, a 29.8% decline from N1.7 billion reported in FY 2019.
- Earnings per share of 175 kobo, down 29.7% from 249 kobo in FY 2019. Total dividend of 210 kobo per share.
- Free Cash Flow remained very strong at N1.2 billion signifying the continued strong cash generating ability of the company in spite of significant headwinds.
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 made significant progress and expect to conclude the merger in the second quarter of 2021, subject to receiving final regulatory approvals.
I am pleased to announce that the Board approved that a dividend of 210 kobo per ordinary share be recommended for payment to our shareholders. This will be subject to the appropriate withholding tax and the approval of the shareholders at the Annual General Meeting.”
Performance Highlights
For further information, please contact:
Chinwe Okpala
Head, Corporate Affairs and Communications
+234 703 328 8115
About CAP Plc
Chemical and Allied Products Plc (CAP) is a leading paints and coatings company in Nigeria with globally recognised brands such as Dulux and Caplux. CAP manufactures and sells premium and standard paints and coatings and is the sole technological licensee of Akzo Nobel Coatings International B.V. in Nigeria. CAP pioneered the colour centre concept in Nigeria in 2005, which resulted in the evolution of the Nigerian paint industry. Today, CAP has 76 colour centres and colour shops across 31 states. CAP is a public company listed on The Nigerian Stock Exchange. It is a subsidiary of UAC of Nigeria PLC which holds 51.49% of the company’s shares. For more information visit https://www.capplc.com/
CAP’s Investors Portal
CAP has a dedicated investors’ portal on its corporate website which can be accessed via this link: https://www.capplc.com/. This Earnings Press Release should be read in conjunction with the Audited Financial Statements for the period ended December 31, 2020 available on our website. For any investment related enquiry, please contact Chinwe Okpala, Head, Corporate Affairs & Communications by electronic mail at cokpala@capplc.com or telephone on: +234 703 328 8115.