Berger Paints profit jumps 27% despite rising operating costs

Berger Paints Nigeria Plc has released its H1 financial statement, reporting a pre-tax profit of N1.20 billion for the six months ended June 30, 2026.

This represents an increase of 27% from N945.82 million recorded in the corresponding period of 2025.

The result, filed on the Nigerian Exchange (NGX) on Friday, July 31, 2026, reflects continued growth in the company’s core paint business despite higher administrative costs.

Key Highlights

• Revenue: N6.97 billion (Up 13% YoY from N6.16 billion)
• Gross Profit: N3.12 billion (Up 15% YoY from N2.72 billion)
• Operating Profit: N1.10 billion (Up 18% YoY from N928.83 million)
• Pre-tax Profit: N1.20 billion (Up 27% YoY from N945.82 million)
• Profit After Tax: N789.10 million (Up 26% YoY from N624.64 million)
• Earnings Per Share: 272 kobo (Up 26% YoY from 216 kobo)
• Total equity: N5.41 billion (Up YoY from N5.28 billion)

Driving the numbers

Berger Paints delivered double-digit revenue growth during the first half of 2026, with revenue rising 13% to N6.97 billion from N6.16 billion in the corresponding period of 2025.

• The growth was driven by increased sales of paints and allied products, which remain the company’s primary source of revenue.
• Gross profit grew faster than revenue, increasing 15% to N3.12 billion. This indicates that the company maintained relatively healthy pricing and production efficiency despite inflationary pressures affecting manufacturing businesses.
• Cost of sales increased to N3.84 billion from N3.44 billion, but the growth in sales was sufficient to expand gross earnings.
• Operating profit rose 18% to N1.10 billion even though administrative expenses increased sharply to N1.88 billion from N1.44 billion. The increase in overheads partly reflects higher personnel, depreciation and operating costs during the period.
• Selling and distribution expenses, however, declined significantly to N200.26 million from N374.84 million, supporting overall profitability.
• Finance income provided an additional boost to earnings. Net finance income increased to N105.10 million from N16.99 million in the prior-year period, supported by gains on financial liabilities measured at amortised cost and higher interest income. Finance costs remained modest at N42.21 million, allowing a larger portion of operating profit to flow through to the bottom line.

On the balance sheet, liquidity improved materially. Cash and cash equivalents rose to N628.88 million from N238.26 million at the beginning of the year. The company generated positive operating cash flow while keeping capital expenditure relatively moderate.

During the period, it also paid dividends amounting to N386.36 million and continued repayment of borrowings.

Balance Sheet

Total External Debt: Approximately N1.24 billion, comprising Bank of Industry facilities and lease obligations disclosed in the notes.

Total Assets: Approximately N9.7 billion.

Cash Balance: N628.88 million (Up 76% from N357.63 million at December 2025)

Market reaction

Berger Paints’ share price closed at N147.60 as of July 31, 2026, a 207.5% from the N48 it closed at the end of 2025.

The share price has stayed put at N147.60 since May 21, 2026.

What you should know

The H1 performance built on a strong Q1 result where the company reported a pre-tax profit of N693.1 million.

The performance was driven by stronger revenue generation, with quarterly sales rising to N3.3 billion from N2.9 billion, as paint and allied products accounted for 99% of total sales.

Apart from revenue, operating expenses were well managed, alongside other income and a net finance income which rose to N29.9 million from N6.2 million, contributing to bottom-line profitability.