Article Summary
- Chemical and Allied Products Plc’s pretax profit dropped by 26% in the first quarter of the year to N576 million from N781 million last year.
- The paint firm reported a 15% decline in turnover from N4.656 billion in 2022 to N3.971 billion in 2023.
- Gross profit dropped to N1.358 billion, from N1.808 billion in 2022, reflecting a decline of 25%
Chemical and Allied Products Plc, one of Nigeria’s paints and coatings companies, has announced its unaudited quarterly results for the period ended March 31, 2023.
The company’s unaudited report for the first quarter showed pretax profit dropped by 26% in the first quarter of the year to N576 million from N781 million last year.
The paint firm reported a 15% decline in turnover from N4.656 billion in 2022 to N3.971 billion in 2023.
This is on top of increasing inflation, with which the economy continues to struggle. The headline inflation rate rose to 22.04% in March, a 0.13% increase from the 21.91% rate recorded in February, according to the latest report published by the Nigerian Bureau of Statistics (NBS).
The report said the increase was buoyed by the jump in prices of food, housing, fuel, and gas, among others. The figure shows a consistent increase in the inflation rate for the last two years.
On a year-on-year basis, the headline inflation rate was 6.13% higher compared to the rate recorded in March 2022, which was 15.92%.
Profit after tax also declined by 26% to N389 million in 2023 from N5273 million reported last year.
Operating expenses dropped marginally by 1% from N1.088 billion to N1.077 billion in 2023.
Gross profit dropped to N1.358 billion, from N1.808 billion in 2022, reflecting a 25% decline.
Revenue
- 2023 Q1: N3.971 billion
- 2022 Q1: N4.656 billion
- Change: -15%
Gross profit
- 2023 Q1: N1.358 billion
- 2022 Q1: N1.808 billion
- Change: -25%
Operating expenses
- 2023 Q1: N1.077 billion
- 2022 Q1: N1.088 billion
- Change: -1%
Pre-tax profit
- 2023 Q1: N576 million
- 2022 Q1: N781 million
- Change: -26%
Net Profit after tax
- 2023 Q1: N389 million
- 2022 Q1: N527 million
- Change: -26%
Commenting on the results, Managing Director Bolarin Okunowo, stated that the first quarter of 2023 was challenging due to high levels of inflation, and uncertainties relating to the elections.
Okunowo noted that the implementation of the currency redesign policy and limited availability of foreign exchange put immense pressure on consumer spending.
- “Like many companies, we felt the impact of the challenging market conditions on our performance. We, however, expect that the macroeconomic headwinds will stabilize post-elections, and as such, we remain confident that our commitment to deliver high-quality products and leverage technology to provide services that exceed our customers’ expectations will drive profitable growth,” Okunowo said.
What you should know
Chemical and Allied Products Plc (CAP) is a paints and coatings company in Nigeria with globally recognized brands such as Dulux, Sandtex, Caplux, and Hempel.
CAP manufactures and sells decorative paints and industrial coatings. CAP is the sole technological licensee of Akzo Nobel Coatings International B.V. and is the Nigerian representative of Hempel Paints South Africa (Pty) Limited.
CAP pioneered the colour center concept in Nigeria in 2005, which resulted in the evolution of the Nigerian paint industry. CAP is a public company listed on The Nigerian Exchange (NGX). It is a subsidiary of UAC of Nigeria Plc which holds 57.85% of the company’s shares.
