Chemical and Allied Products Plc (CAP) has released its financial statements for the year ended 31 December 2025, reporting a pre-tax profit of N9.1 billion.
This marks a 50.51% increase compared to the N6.06 billion recorded in 2024, with the fourth quarter alone contributing N3.6 billion, up 84.08% year-on-year.
The strong performance in both the fourth quarter and the full year was driven by robust sales, higher other income, and a significant rise in finance income.
For the full 12 months of 2025, the company generated revenue of N44.8 billion, up 23.36% from N36.3 billion the previous year.
Key highlights (FY 2025 vs 2024)
- Revenue: N44.8 billion, up 23.36% YoY
- Cost of sales: N25.4 billion, up 17.71% YoY
- Gross profit: N19.4 billion, up 31.62% YoY
- Other income: N460.2 million, up 5.36% YoY
- Operating profit: N8.04 billion, up 47.59% YoY
- Finance income: N1.08 billion, up 68.33% YoY
- Pre-tax profit: N9.1 billion, up 50.51% YoY
- Total assets: N24.7 billion, up 25.53%
- Retained earnings: N12.7 billion, up 46.10%
What the company’s books are saying
A closer look at the results shows that the sale of paint products accounted for nearly all the revenue, contributing N44.8 billion (99.9%), while services added a modest N46.2 million.
- As expected, the cost of sales increased in line with higher revenue, rising to N25.4 billion from N21.5 billion in 2024.
- After accounting for these costs, gross profit came in at N19.4 billion, up 31.62% year-on-year.
Selling and marketing expenses rose 28.11% to N4.5 billion, while administrative expenses increased 17.77% to N7.3 billion.
- Other income, amounting to N460.2 million and largely from scrap sales and management fees, contributed to an operating profit of N8.04 billion, up 47.59%.
- Finance income grew sharply to N1.08 billion, primarily from interest on short-term bank deposits, a 68.33% increase from the prior year.
With finance costs falling significantly to N1.4 million from N30.1 million, pre-tax profit ultimately settled at N9.1 billion.
Balance sheet performance
The company’s balance sheet showed strong growth, with total assets rising 25.53% to N24.7 billion.
- The largest contributors were cash and cash equivalents of N11.7 billion, inventories of N6.6 billion, and property, plant, and equipment of N3.4 billion.
On the liabilities side, total obligations increased 11.01% to N10.03 billion, with trade and other payables making up the largest portion at N4.9 billion.
Shareholders’ equity strengthened to N14.6 billion from N10.6 billion in the previous year, with retained earnings remaining the largest component at N12.7 billion, up 46.10%.
What to know
- Revenue growth was supported by strong demand for paint products.
- Finance income expanded sharply, boosting overall profitability.
- The company maintained a strong balance sheet, with retained earnings accounting for the bulk of equity.
- On a year-to-date basis, the stock is up 15.22%, currently priced at N79.50.
