Meyer Plc has released its unaudited 2025 results for the year ended December 31, 2025, reporting a pre-tax profit of N737 million, up 61% compared to N457.602 million in the previous year.
The unaudited financial statements highlight strong revenue growth, driven by increased demand for its paint. Revenue grew by 36% to N4.232 billion, almost half of the company’s total revenue in 5 years.
Profit after tax stood at N550 million, up 86%.
However, investors are waiting to see the company reach the N1 billion mark recorded in 2020.
Key highlights (FY 2025 vs FY 2024)
- Revenue: N4.23 billion, up 35.5% YoY
- Cost of Sales: N2.72 billion, up 30.5% YoY
- Gross Profit: N1.51 billion, up 45.4% YoY
- Operating Profit: N392 million, up 87.9% YoY
- Earnings per Share (EPS): N1.11, up 88% YoY
- Total Assets: N3.44 billion, up 21.2% YoY
- Equity: N2.23 billion, up 21.9% YoY
What the numbers are saying
The growth in revenue was driven primarily by increased sales in its paint and coatings segment.
In addition, the ability to grow revenue while maintaining control over direct costs, reflected in the 45.4% increase in gross profit, to N1.51 billion, compared to N1.04 billion in 2024, giving a healthy margin of 36%.
However, the operating profit margin at 9% suggests operating costs/overhead pressure, moderating operating profit to N392 million.
The bottom-line performance was further boosted by finance income, keeping the pre-tax profit above the operating profit.
- Finance income hit N345 million, up from N251 million in 2024.
- Additionally, finance costs remained low at N0.2 million, compared to N2.5 million in 2024.
Balance sheet performance
On the balance sheet, total assets expanded to N3.44 billion, reflecting growth across both current and non-current assets.
- Notably, the company’s cash and cash equivalents increased to N2.05 billion, compared to N1.58 billion in 2024, strengthening liquidity and financial flexibility.
- The company’s total equity grew to N2.23 billion, up from N1.83 billion in 2024, driven by higher retained earnings.
- The significant reduction in debt to N1.82 billion, down 68.4% from N5.78 billion in 2024, reflects the company’s improved financial leverage and lower dependency on external borrowings.
What to know
Meyer Plc’s 2025 financial performance highlights the company’s ability to generate strong revenue and profitability, although operating costs remain a concern.
The stock price closed at N19 yesterday, reflecting a 46.7% increase. Last year, it gained 54%.
The company’s market capitalization stands at N10.1 billion, significantly higher than its net assets of N2.23 billion.
This could mean that investors believe the company has good future growth potential, or the stock might be overpriced compared to the company’s actual value, suggesting overvaluation.
Earnings per share (EPS) grew by 88% to N1.11 in 2025, marking the highest level since 2021. It is expected that the company will return to the N2.25 EPS achieved in 2020 during the 2026 financial year.
Meyer Plc is the 109th most traded stock on the NGX over the past three months with 13.5 million shares valued at N221 million, suggesting a moderate trading activity.
