Chemical and Allied Products Plc, owners of the Dulux brand in Nigeria, posted a pre-tax profit of N414 million in Q3 2023.
The figure represents a 33% decline year-on-year from the N623 million recorded in Q3 2022.
As per the company’s financial results for the period ending September 30, the company recorded a revenue of N5.49 billion in Q3 2023, a 27% YoY growth from N4.32 billion recorded in Q3 2022.
With this performance, the company recorded a revenue of N15.26 billion in the first nine months of 2023, a 17% increase from the N13.06 billion recorded in the first nine months of 2022.
Key Highlights Q3 2023 vs Q3 2022
Revenue: N5.486 billion, +27% YoY
Gross Profit: N2.185 billion, +25% YoY
Operating Expenses: N1.817 billion, +45% YoY
Operating Profit: N426 million, -24% YoY
Operating Margin: 8%, -522 bps
Net Finance Income: -N12 million, -119% YoY
Profit Before Tax: N414 million, -33% YoY
Profit After Tax: N278 million, -34% YoY
Highlights
The drop in the company’s yearly profits can be attributed to rising operating expenses, which account for about a third of the company’s revenue. Another significant factor is the significant 119% increase in net finance costs compared to the previous year.
While the company’s Q3 year-on-year performance was not exciting, investors are provided with a respite with the nine-month results.
Pre-tax profit in the nine months ending September 30, 2023, was N2.33 billion, a 19% increase from the N1.95 billion recorded in the corresponding period in 2022.
PAT during the nine months ending September 30 was N1.56 billion, a 17% increase year-on-year from the same period in 2022.
