Chemical and Allied Products (CAP) Plc, a Nigerian paint and coating firm, posted its biggest profit in at least 13 years, according to figures collated by The New Chronicles.
According to the company’s most recent financial statement, its after-tax earnings climbed from N2.37 billion in 2022 to N2.5 billion in 2023.
The company’s financial income increased to N681 million from N381 million, which was the main driver of this.
The company’s interest income on short-term bank deposits, interest income on financing leases, and exchange gain, which increased to N308 million from N171 million, N3.5 million from N3 million, and N369 million from N207 million, respectively, can be blamed for the rise of this increase.
Revenue for the manufacturer increased to N23.8 billion from N19.2 billion, a 23 percent increase. For the entire year of 2023, N96 million came from revenue from services, while the majority of the N23.8 billion in revenue came from sales of paint goods, which accounted for N23.7 billion.
A closer look at the statement reveals that the company generated a profit margin of 10.5%, demonstrating how well it controls its expenses to its revenue.
By 2023, the company’s sales margin increased to 37.8% on each unit of goods or services sold. The cost of sales for CAP Plc went from N11.5 billion to N14.8 billion, a 28 percent increase.
Ninety-three percent of the expenditures incurred in production throughout the time were consumed by raw material, royalty fees, and staff costs (excluding directors’ emoluments).
The company’s gross profit increased from N7.6 billion in 2022 to N9 billion in 2023, an 18% increase.
From N3 billion to N3.2 billion, its operating profit increased. The company’s operating activities produced N4.53 billion in net cash flow, a 30% increase from N3.48 billion.
From a negative cash flow of N540 million, net cash flows used for investing activities were N327 million.
At the end of the period, the company’s cash and cash equivalents increased to N4.99 billion, up 32% from N3.76 billion during the period under review.
The basic and diluted earnings per share of CAP Plc that are attributable to equity investors went from N292 to N309 in 2023.
