PRESS RELEASE Regulated Information
Audited Financial Results for the Year Ended 31 December 2023
Lagos, 28 March 2024 - Chemical and Allied Products Plc ("CAP" or the "Company"), Nigeria's leading paints and coatings company, today announced its audited results for the year ended 31 December 2023.
Highlights
• Revenue at N23.9 billion, an increase of 24% compared to N14.2 billion in FY 2022.
• Gross profit 18% higher at N9.0 billion.
• Operating profit 5% ahead of FY 2022, at N3.3 billion, despite escalating cost pressures throughout the year.
• Profit before tax of N3.8 billion, up 10% from N3.4 billion in FY 2022.
• Total profit of the year of N2.5 billion, a 6% increase compared to N2.4 billion last year.
• Proposed FY 2023 dividend of 155 kobo per share.
Commenting on the results, Managing Director, Bolarin Okunowo, stated:
"Our performance in FY 2023 is a testament to our resilience as a business. Despite facing numerous policy and macroeconomic challenges throughout the year- notably the cash crunch from the naira re-design, the removal of petrol subsidies leading to a rapid escalation in the prices of raw materials, general goods and services, and foreign exchange challenges-we steadfastly maintained our reputation for excellence by providing high-quality products and services that delight our customers. Moving forward, we will consolidate efforts to ensure that our company remains resilient against macroeconomic headwinds, while also continuing to earn and exceed our customers' expectations."
The Company is pleased to announce that its Board of Directors has proposed a full year dividend of ₦1.26 billion, which represents 155 kobo per ordinary share of 50 kobo each, for payment to shareholders. This will be subject to the appropriate withholding tax and the approval of the shareholders at the forthcoming Annual General Meeting ("AGM").
Performance Summary
In million ₦, unless otherwise stated | FY 2023 | FY 2022 | YoY |
Revenue | 23,890 | 19,208 | 24% |
Gross Profit | 9,012 | 7,614 | 18% |
Gross Margin (% of Revenue) | 38% | 40% | (192 bps) |
Other Operating Income | 533 | 251 | 112% |
Impairment Loss on Trade Receivables | 32 | 31 | 1% |
Selling & Marketing expenses | (2,363) | (1,913) | 24% |
Administrative expenses | (3,961) | (2,887) | 37% |
Operating Expenses | (5,759) | (4,518) | 27% |
Operating Expenses (% of Revenue) | -24% | -24% | (59 bps) |
Operating Profit | 3,253 | 3,096 | 5% |
Operating Margin (% of Revenue) | 14% | 16% | (250 bps) |
Finance Income | 681 | 382 | 78% |
Finance Cost | (155) | (34) | 357% |
Net Finance Income | 526 | 348 | 51% |
Profit Before Tax | 3,779 | 3,444 | 10% |
Profit before Tax Margin (% of Revenue) | 16% | 18% | (211 bps) |
Income Tax Expense | (1,264) | (1,068) | 18% |
Profit After Tax | 2,515 | 2,376 | 6% |
Profit after Tax Margin (% of Revenue) | 11% | 12% | (185 bps) |
Earnings Per Share (kobo) | 309 | 292 | 6% |
In million ₦, unless otherwise stated | Dec-23 | Dec-22 | YoY |
Non-current Assets | 2,336 | 2,140 | 9% |
Current Assets | 12,811 | 11,028 | 16% |
Assets Held for Sale | 227 | 238 | (5%) |
Total Assets | 15,374 | 13,406 | 15% |
Non-current Liabilities | 404 | 337 | 20% |
Current Liabilities | 7,000 | 6,470 | 8% |
Total Liabilities | 7,404 | 6,807 | 9% |
Equity | 7,970 | 6,600 | 21% |
Total Liabilities and Equity | 15,374 | 13,406 | 15% |
For more information, please contact:
Jimi Sorinola
Investor Relations
investorrelations@capplc.com
About CAP Plc
Chemical and Allied Products Plc (CAP) is a leading paints and coatings company in Nigeria with globally recognised brands such as Dulux, Sandtex, Caplux and Hempel. CAP manufactures and sells decorative paints and industrial coatings. CAP is the sole technological licensee of Akzo Nobel Coatings International B.V. and is the Nigerian representative of Hempel Paints South Africa (Pty) Limited. CAP pioneered the colour centre concept in Nigeria in 2005, which resulted in the evolution of the Nigerian paint industry. CAP is a public company listed on The Nigerian Exchange ("NGX"). It is a subsidiary of UAC of Nigeria PLC which holds 57.85% of the company's shares. For more information visithttps://www.capplc.com/
CAP's Investors Portal
CAP has a dedicated investors' portal on its corporate website which can be accessed via this link:https://www.capplc.com/investor-relations/ . This Earnings Press Release should be read in conjunction with the Audited Financial Statements for the period ended 31 December, 2023 available on our website. For any investment related enquiry, please contact Lolade Bashiru, Investor Relations by electronic mail atinvestorrelations@capplc.com.
Disclaimer
This announcement contains or will contain forward-looking statements which reflect management's expectations regarding the Company's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "anticipate", "believe", "expects", "intend" "estimate", "project", "target", "risks", "goals" and similar terms and phrases have been used to identify the forward- looking statements. These statements reflect management's current beliefs and are based on information currently available to management. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking statements. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally. Chemical and Allied Products Plc cautions readers that several factors could cause actual results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully, and undue reliance should not be placed on the forward-looking statements. For additional information with respect to certain of these risks or factors, reference should be made to the Company's disclosure materials filed from time to time with Securities and Exchange Commission of Nigeria. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise.
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Chemical and Allied Products èòc published this content on 28 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 March 2024 13:42:47 UTC.