Chemical and Allied Products Plc (a subsidiary of UACN), involved in the manufacturing and sales of paint released its Full year 2019 Earnings Result to the investing public on Tuesday, 28th of January 2020.
According to the result, the company grew its Full Year’19 Revenue by 9.65% to ₦8.41 billion from ₦7.67 billion in FY’18, on the back of an increase in sales of paint products and services (its flagship revenue source) over the period.
Also, the company experienced a 36.14% growth in its Net Finance Income to ₦425.63 million (from ₦312.63 million in 2018) following an increase in Interest Income from Short-Term Bank Deposit, Finance Lease Asset, and a 94.06% decline in Finance Cost.
However, the company saw a significant increase in key expenditure line items such as Cost of Sales, Selling and Distribution expenses, and Administrative expenses which grew by 9.99%, 122.55% and 17.59% respectively to ₦4.43 billion, ₦584.24 million, and ₦1.35 billion compared to ₦4.03 billion, ₦262.52 million and ₦1.15 billion in 2018. This increase in expenses resulted to a decline in both the company’s Profit Before Tax (PBT) and Profit After Tax (PAT) by 2.01% and 12.19% to ₦2.55 billion and ₦1.78 billion respectively relative to FY’18.
Resultantly, Investors earning’s indicator (Earnings per Share) decline by12.19% to ₦2.55 in FY’19 compare to ₦2.90 in the corresponding period of 2018.
Conclusively, the last five years Dividend-to-EPS ratio of CAP Plc stood at an average of 0.97:1 (or 97%). This implies that if tradition is maintained, investors of CAP are likely to get a dividend per share payout of around ₦2.40 for FY’19, which translates to a dividend yield of 8.7% given its current share price of ₦27.5 as of Tuesday 28th January 2020.