CAP Plc Sees 51% Increase in Annual Profit, Reaching N5.7 Billion

Chemical and Allied Products (CAP) Plc, the paint manufacturing subsidiary of UAC of Nigeria Plc, has announced a substantial 50.9% rise in its post-tax profit for 2025, compared to the previous year. The company’s turnover also saw an impressive growth of nearly 25%.

For the year, CAP Plc achieved a net profit of N5.7 billion, as revenue surged from N36.4 billion to N44.9 billion. Although costs increased marginally, they did not significantly hinder profitability, according to the corporate results disclosed on Friday.

In light of these results, CAP has declared a dividend of N4 per share, representing a total payout of N3.3 billion. This is an increase from the N2.40 per share distributed to shareholders in 2024.

Bolarin Okunowo, the managing director of CAP Plc, attributed these accomplishments to the thorough implementation of the company’s strategy along with the unwavering support and trust from customers, trade partners, and employees. He highlighted that the focus for 2026 would be to further enhance investments in employees, brands, and operations to meet and exceed stakeholder expectations.

Selling and marketing expenditures jumped by 28.4% to N4.5 billion, largely due to increased spending on vehicle repairs and maintenance. Additionally, administrative costs rose by 17.3% to N7.2 billion, primarily driven by higher staff expenses, excluding those of directors.

The company set aside N424 million as a provision against its N6.7 billion inventory, aimed at reducing obsolete and slow-moving stock items. Independent auditors KPMG noted that inventory comprised 27% of total assets and was valued at N6.6 billion in the previous year.

CAP Plc also experienced a rise in finance income, increasing from N644.8 million to N1.1 billion due to interest from short-term bank deposits, along with a modest rise in other income from N436.8 million to N472.3 million.

The pre-tax profit accelerated to N9.1 billion, marking over a 50% increase, while the net profit escalated to N5.7 billion from N3.8 billion in the preceding year.