Chemical and Allied Products Plc - Q2 and H1 2023 Unaudited Results
NGX Ticker: CAP
PRESS RELEASE
Regulated Information
Financial Results for the Period ended 30 June 2023
Lagos, 31 July 2023 - Chemical and Allied Products Plc ("CAP" or the "Company"), Nigeria's leading paints and coatings company, on July 27, 2023 announced its unaudited results for the half year ended 30 June 2023.
Highlights
- Revenue at N9.8 billion, an increase of 12% compared to N8.7 billion in H1 2022.
- Gross profit 3% higher at N3.6 billion. Gross margin at 37%, lower by 3.0 percentage points on account of higher raw material and distribution costs.
- Operating profit 6% lower YoY at N1.2 billion with operating margin contracting by 2.4 percentage points to 13%.
- Profit before tax of N1.9 billion, up 44% from N1.3 billion in H1 2022.
- Profit after tax (net profit) of N1.3 billion, up 42% YoY with net profit margin at 13%.
Commenting on the results, Managing Director, Bolarin Okunowo, stated:
"We are delighted with our strong recovery in Q2 as election-related uncertainties eased. Given our strong performance in the second quarter, we recorded meaningful revenue growth of 12% and a 42% increase in profit after tax in H1 2023. We are encouraged by the strength and resilience of our financial results, despite the challenging macroeconomic environment. Whilst we expect that the impact of recent policy changes on our operating environment will continue into the second half of the year, we believe that we are well positioned for growth, with the ability to meet the evolving needs of our customers".
Performance Summary
In million ₦, unless otherwise stated | Q2 2023 | Q2 2022 | YoY | H1 2023 | H1 2022 | YoY |
Revenue | 5,806 | 4,089 | 42% | 9,777 | 8,745 | 12% |
Gross Profit | 2,279 | 1,707 | 34% | 3,637 | 3,514 | 3% |
Gross Margin (% of Revenue) | 39% | 42% | (2.5 pp) | 37% | 40% | (3.0 pp) |
Other Operating Income | 62 | 35 | 77% | 172 | 76 | 126% |
Selling & Marketing expenses | (535) | (445) | 20% | (876) | (896) | (2%) |
Administrative expenses | (958) | (785) | 22% | (1,695) | (1,374) | 23% |
Operating Expenses | (1,493) | (1,231) | 21% | (2,570) | (2,270) | 13% |
Operating Expenses (% of Revenue) | 26% | 30% | (4.4 pp) | 26% | 26% | 0.3 pp |
Operating Profit | 848 | 511 | 66% | 1,239 | 1,320 | (6%) |
Operating Margin (% of Revenue) | 15% | 12% | 2.1 pp | 13% | 15% | (2.4 pp) |
Finance Income | 578 | 37 | 1,451% | 787 | 10 | 7,681% |
Finance Cost | (91) | (0.4) | 23,156% | (113) | (1) | 14,044% |
Net Finance Income | 488 | 37 | 1,221% | 673 | 9 | 7,134% |
Profit Before Tax | 1,335 | 548 | 144% | 1,912 | 1,329 | 44% |
Profit before Tax Margin (% of Revenue) | 23% | 13% | 9.6 pp | 20% | 15% | 4.4 pp |
Income Tax Expense | (444) | (175) | 153% | (631) | (425) | 48% |
Profit After Tax | 892 | 373 | 139% | 1,281 | 904 | 42% |
Profit after Tax Margin (% of Revenue) | 15% | 9% | 6.2 pp | 13% | 10% | 2.8 pp |
Chemical and Allied Products Plc - Q2 and H1 2023 Unaudited Results NGX Ticker: CAP
In million ₦, unless otherwise stated | Jun-23 | Dec-22 | YoY |
Non-current Assets | 2,202 | 2,140 | 3% |
Current Assets | 12,894 | 11,028 | 17% |
Assets Held for Sale | 238 | 238 | - |
Total Assets | 15,334 | 13,406 | 14% |
Non-current Liabilities | 336 | 337 | (0.2%) |
Current Liabilities | 8,380 | 6,470 | 30% |
Total Liabilities | 8,716 | 6,807 | 28% |
Equity | 6,618 | 6,600 | 0.3% |
Total Liabilities and Equity | 15,334 | 13,406 | 14% |
For more information, please contact:
Lolade Bashiru Investor Relationsinvestorrelations@capplc.com
Chemical and Allied Products Plc - Q2 and H1 2023 Unaudited Results
NGX Ticker: CAP
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 30 June, 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 01 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2023 07:53:10 UTC.