27 April 2021 – Chemical and Allied Products Plc (CAP), one of Nigeria’s leading paints and coatings companies, announced its unaudited results for the period ended 31 March 2021.
Commenting on the performance, Managing Director, David Wright, stated:
“In the first quarter of 2021, we saw the biggest impact of the COVID-19 pandemic on our business. Increased global demand for chemicals driven by the economic rebound in Asia and feedstock challenges, with several suppliers declaring Force Majeures, resulted in a global shortage of raw materials.
This significantly impacted product availability in the first quarter of the year. In addition, there was a scarcity premium placed on all available raw materials which eroded gross margin across various product lines.
We have taken steps to secure alternative raw material sources and are increasing inventory levels to mitigate against further disruptions. As such, we expect a strong recovery in the remaining quarters of the year.
Our focus remains on creating shareholder value and we will continue to pursue attractive growth opportunities to achieve this.”
Highlights
- Revenue of N2.1 billion, lower than Q1 2020 by 9.5%.
- Gross profit of N703 million, with a gross margin of 33.5%.
- Operating expenses better managed with opex/ sales of 23.3%, an improvement of 252 basis points from 25.8% in Q1 2020.
- EBIT of N236 million, with EBIT margin of 11.3%.
- Profit Before Tax of N299 million, with a PBT margin of 14.3%.
- Profit After Tax of N203 million, with PAT margin of 9.7%.
- Inventory of N2.0 billion, up 111% compared to N967 million at Dec 2020.
- Trade and other receivables of N194 million, down 58.1% compared to N461 million at Dec 2020.
- Cash of N5.7 billion, of which N1.4 billion is expected to be distributed as dividends to shareholders in June 2021.
Chemical and Allied Products Plc (CAP) is a leading paints and coatings company in Nigeria with globally recognised brands such as Dulux and Caplux. CAP manufactures and sells premium and standard paints and coatings and is the sole technological licensee of Akzo Nobel Coatings International B.V. in Nigeria.
CAP pioneered the colour centre concept in Nigeria in 2005, which resulted in the evolution of the Nigerian paint industry.
Today, CAP has 76 colour centres and colour shops across 31 states. CAP is a public company listed on The Nigerian Stock Exchange now Nigerian Exchange Group. It is a subsidiary of UAC of Nigeria PLC which holds 51.49% of the company’s shares.