Berger Paints Nigeria Plc posted improved results for the third quarter of 2025, as profit before tax rose 138% to N518.6 million from N218.1 million a year earlier, while profit after tax more than doubled to N343 million from N148 million.
For the nine-month period, profit before tax stood at N1.46 billion, representing a 373% year-on-year growth, while profit after tax rose to N968 million from N202 million in the same period last year.
A closer look shows that the performance was supported by stronger paint sales, tighter cost control, and improved operating efficiency, all of which helped boost margins despite rising expenses.
Key Highlights (Q3 2025 vs Q3 2024)
- Revenue: N3.15 billion (+20.5% YoY)
- Gross profit: N1.40 billion (+45.0% YoY)
- Operating profit: N512.2 million (+120.1% YoY)
- Finance income: N21.6 million (+788.98%)
- Profit before tax: N518.6 million (+137.7% YoY)
- Profit after tax: N343 million (+131.2% YoY)
- Earnings per share: 118 kobo, up from 51 kobo
- Total equity: N4.5 billion (+18% YoY)
Revenue rebounds on strong paint sales
Revenue for Q3 grew 20.5% year-on-year to N3.1 billion, supported by higher demand for paints and allied products.
- For the nine-month period, revenue rose 24% to N9.3 billion from N7.4 billion in 2024.
- The company’s paint and allied products accounted for over 97% of total revenue (N9.04 billion), while contract services contributed N271.6 million.
Despite an increase in discounts and rebates, net revenue remained strong.
Margins expand despite cost pressure
Gross profit rose 45% year-on-year to N1.40 billion in Q3 2025, as revenue growth outpaced sales costs.
- This is despite a 6.2% rise in the cost of sales, which came in at N1.76 billion, reflecting higher production and input costs.
- Operational expenses also increased, with administrative expenses up 17.3% to N719.2 million and selling & distribution costs climbing 42.6% to N204.6 million.
But even with these pressures, operating profit more than doubled.
- Operating profit more than doubled to N512.2 million in Q3 2025, up 120% from N232.7 million in the same period last year, reflecting strong cost discipline and an improved scale.
- Finance income surged to N21.6 million, compared to just N2.4 million in Q3 2024, driven by improved returns on financial assets.
- After finance costs and taxes, profit after tax rose to N343 million, up from N148.3 million — a 131% increase year-on-year.
- Earnings per share climbed to 118 kobo, up from 51 kobo in Q3 2024, offering stronger returns to shareholders.
The balance sheet holds strong.
- Cash and cash equivalents improved to N254.6 million (vs N237 million in Dec 2024).
- Inventory dropped by 24.5% YTD to N2.49 billion, signaling improved stock turnover.
- Receivables rose by 46% to N526 million as sales expanded.
- Total assets hit N8.01 billion, while total equity climbed to N4.51 billion — up 18% YoY.
- Borrowings reduced slightly, with total liabilities down to N3.50 billion from N3.69 billion at the end of 2024.
