Chemical and Allied Products Plc (NGX: CAP), Nigeria’s leading paints and coatings company, has posted an impressive financial results for the six months ended 30 June, 2022.
The company recorded a 53% growth in revenue, and an impressive 78% increase in Profit After Tax for the period.
Commenting on the results, Managing Director, Bolarin Okunowo, stated:
“We are excited with the results for this half year, having delivered double digit growth in revenue and triple digit growth in operating profit. We are seeing encouraging results from recent investments in our brands and distribution infrastructure and are confident that these investments will further yield positive results as well as
expand the frontiers of our business. Inflationary cost pressures remain a key concern and we are focused on delivering operational efficiencies and taking proactive pricing actions to combat the impact of rising costs.”
KEY PERFORMANCE HIGHLIGHTS
- Revenue: N8.74 billion in H1 2022, compared to N5.72 billion in H1 2021 (53% growth year-on-year). N8.70 billion (H1 2021: N5.70 billion) of the revenue came from the sale of paint products while N37.35 million (H1 2021: N24.14 million) was revenue from services.
- Gross Profit: N3.51 billion in H1 2022, compared to N1.73 billion in H1 2021 (102% growth year-on-year).
- Operating expenses: N2.32 billion in H1 2022, compared to N1.36 billion in H1 2021 (70% increase year-on-year)
- Profit Before Tax: N1.32 billion in H1 2022, compared to N0.69 billion in H1 2021 (40% growth year-on-year)
- Profit After Tax: N0.90 billion in H1 2022, compared to N0.50 billion in H1 2021 (41% growth year-on-year)
- Basic and diluted EPS (kobo): N1.11 (H1 2021: N0.73)
Statement of Financial Position:
- Total Assets: N11.82 billion, compared to N12.11 billion as at December 2021 (17% year-to-date growth). The company’s inventory is the highest component of the company’s asset with a value of N5.85 billion. Cash and cash equivalents accounted for N3.08 billion.
- Total Liabilities: N6.97 billion, compared to N7.70 billion as at December 2021 (9% year-to-date decline). Trade and other payables accounted for N4.32 billion, while Dividends payable accounted for N1.32 billion.
- Shareholders Fund: N4.84 billion, a 13% year-to-date increase relative to December 2021’s value of N4.41 billion. The retained earnings accounted for N2.94 billion out of the N4.41 billon Shareholder’s fund.
Cash flow statement
- N1.07 billion was generated from operating activities, compared to N1.27 billion to was used for the same activity in the preceding year.
- N288.99 million was used for investing activities, compared with N395.37 million used for the same activity in H1 2021.
- N276.26 million was used in financing activities in H1 2022, against N1.50 billion used in H1 2021.
- Cash and cash equivalents at the end of the period stood at N3.08 billion.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur