Chemical and Allied Products Plc - Q1 2023 Unaudited Results
NGX Ticker: CAP
PRESS RELEASE
Regulated Information
Unaudited Quarterly Financial Results for the Period Ended 31 March 2023
Lagos, 27 April 2023 - Chemical and Allied Products Plc ("CAP" or the "Company"), Nigeria's leading paints and coatings company, today announced its unaudited quarterly results for the period ended 31 March 2023.
Commenting on the results, Managing Director, Bolarin Okunowo, stated:
"The first quarter of 2023 was challenging due to high levels of inflation, uncertainties relating to the elections, the implementation of the currency redesign policy and limited availability of foreign exchange which put immense pressures on consumer spending. Like many companies, we felt the impact of the challenging market conditions on our performance. We, however, expect that the macroeconomic headwinds will stabilize post-elections, as such we remain confident that our commitment to deliver high quality products and leverage technology to provide services that exceed our customers' expectations will drive profitable growth".
Highlights
- Revenue declined 15% from prior year ("PY") to N4.0 billion.
- Gross profit of N1.4 billion, reflecting a decline of 25%. Gross margin lower by 4.6 percentage points, with margin impacted by input cost escalations and higher energy and distribution costs.
- Operating profit was 49% lower than PY at N391 million. Operating expenses were flat year on year.
- Profit before tax of N576 million, down 26% from N781 million in Q1 2022.
- Total profit for the period was N389 million, with net profit margin of 10%.
Performance Summary
In million ₦, unless otherwise stated | Q1 2023 | Q1 2022 | YoY |
Revenue | 3,971 | 4,656 | (15%) |
Gross Profit | 1,358 | 1,808 | (25%) |
Gross Margin (% of Revenue) | 34% | 39% | (4.6 pp) |
Other Operating Income | 110 | 41 | 169% |
Selling & Marketing expenses | (340) | (450) | (24%) |
Administrative expenses | (737) | (638) | 16% |
Operating Expenses | (1,077) | (1,088) | (1%) |
Operating Expenses (% of Revenue) | 27% | 23% | 3.7 pp |
Operating Profit | 391 | 760 | (49%) |
Operating Margin (% of Revenue) | 10% | 16% | (6.5 pp) |
Finance Income | 208 | 22 | 861% |
Finance Cost | (22) | (0.4) | 5,378% |
Net Finance Income | 186 | 21 | 774% |
Profit Before Tax | 576 | 781 | (26%) |
Profit before Tax Margin (% of Revenue) | 15% | 17% | (2.3 pp) |
Income Tax Expense | (187) | (254) | (26%) |
Profit After Tax | 389 | 527 | (26%) |
Profit after Tax Margin (% of Revenue) | 10% | 11% | (1.5 pp) |
Chemical and Allied Products Plc - Q1 2023 Unaudited Results
NGX Ticker: CAP
In million ₦, unless otherwise stated | Mar-23 | Dec-22 | Δ |
Non-current Assets | 2,127 | 2,140 | (1%) |
Current Assets | 12,747 | 11,028 | 16% |
Assets Held for Sale | 238 | 238 | - |
Total Assets | 15,112 | 13,406 | 13% |
Non-current Liabilities | 337 | 337 | 0.1% |
Current Liabilities | 7,787 | 6,470 | 20% |
Total Liabilities | 8,123 | 6,807 | 19% |
Equity | 6,989 | 6,600 | 6% |
Total Liabilities and Equity | 15,112 | 13,406 | 13% |
For more information, please contact:
Lolade Bashiru Investor Relationsinvestorrelations@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 visit https://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 Unaudited Financial Statements for the period ended 31 March, 2023 available on our website. For any investment related enquiry, please contact Lolade Bashiru, Investor Relations by electronic mail at investorrelations@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 27 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2023 12:43:04 UTC.