In the first half of 2024, Berger Paints Nigeria recorded a pre-tax profit of N122 million, a 72% decline from N439.7 million during the same period in 2023.
The company’s revenue grew by 40% during that time, from N3.55 billion in H1 2023 to N4.96 billion.
The company’s half-year net profit of about N82.9 million represented a 72% decline from the N299 million net profit recorded in H1 2023.
The company’s first-half 2024 financial statements show that selling and distribution costs rose from N132.4 million in the first half of 2023 to N303.7 million, a 129% year-over-year increase.
The company’s finances were significantly impacted by inflationary pressure during this time, as operating expenses rose by 67% annually to N1.33 billion from N795 million in H1 2023.
The company’s distribution costs rose from N108.1 million in the first half of 2023 to N222.8 million in the first half of 2024, a 106% year-over-year increase. Rising fuel prices are the cause of this increase. During the half-year, its office and corporate expenses climbed by 173% to N158 million from N58 million in H1 2023.
The company’s payroll costs went up as well.
With N2.1 billion, the majority of the inventory was made up of raw and packaging materials, as opposed to N955.8 million at the end of H1 2023.
Over the course of the six-month period, N3.2 billion was spent on raw and packaging materials, as well as changes to finished products and products-in-process that were consumed and included in the cost of sales.
