Chemical and Allied Products beats inflation, reports 78% jump in profits H1 2022

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Chemical and Allied Products Plc (CAP) has announced its unaudited results for the period ended 30 June 2022 with a Profit After Tax of N904 million as against  N509 million representing a growth of  78 per cent.

Profit Before Tax was N1.3 billion, up 91 per cent from N697 million in half year of 2021 while gross profit 102 per cent higher on the back of strong revenue growth and higher gross margin, up 988 bps.

Revenue grew by 53 per cent to N8,745 billion in 2022 from N5.728 billion in the half year 2021. Operating expenses rose to N2,326 billion from  N1,367 billion in 2021, representing a  growth of 70 per cent.

Selling & Marketing expenses stood at N896 million in 2022 from N303 million, accounting for a 196 per cent increase.

Administrative expenses was N1,430 billion in 2022 from  N1,064 billion representing  34 per cent growth.

Other Operating Income stood N76 million in 2022 from  N219 million in 2021 accounting for 65 per cent drop Income Tax Expense  was N425 million from  N188 million in 2021, representing a growth of 127 per cent.

Chemical and Allied Products Plc (CAP) is a 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. Today, CAP has 105 branded retail stores (Dulux Colour Centres, Sandtex Paints Stores and Dulux Colour Shops) across 31 states.

CAP is a public company listed on The Nigerian Exchange (NGX). It is a subsidiary of UAC of Nigeria Plc which holds 56.54 per cent of the company’s shares.

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.”