Chemical and Allied Products Plc (CAP Plc), one of Nigeria’s paint manufacturers, strengthened its financial position in the nine months ended September 30, 2025, as higher sales from its core operations drove profit and improved cash generation.
The company’s unaudited results showed that revenue rose by 28 per cent to N30.27 billion in 9M’25 from N23.65 billion in the same period of 2024, reflecting robust demand for its paint products and improved pricing efficiency. This stronger top-line performance was reflected in higher gross profit, which increased to N13.06 billion from N9.02 billion the previous year.
Operating profit surged 68 per cent to N4.78 billion, aided by efficient cost management and increased production volumes despite inflationary pressures on raw materials and logistics. The company’s profit before tax rose to N5.49 billion, while after-tax profit advanced by 39 per cent to N3.68 billion.
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Commenting on the results, Bolarin Okunowo, the company’s managing director, said, “We are pleased to report on our performance for Q3 2025. Revenue, operating profit, and profit before tax grew by 28 percent, 68 percent, and 39 percent YTD, respectively, driven by the successful execution of our strategic growth initiatives and a continued focus on operational efficiency.”
“As we enter the final quarter of the year, our commitment remains to sustaining profitable growth and further enhancing our customer experience,” he said.
A key highlight of the quarter was CAP Plc’s return to positive cash generation from operations. Net cash from operating activities stood at N3.56 billion, a reversal from the net outflow of N1.46 billion in the same period last year. The turnaround was driven by stronger profit performance and improved working capital efficiency, particularly lower inventory levels and better receivables management.
Changes in inventories released N1.18 billion into cash flow, reversing a N3.59 billion drag in the prior year. Although tax payments of N1.73 billion moderated total inflows, the company’s cash position remained strong, ending the period with N7.7 billion in cash and cash equivalents, a 217 per cent increase year-on-year.
The company’s balance sheet reflected a 17 per cent growth in total assets to N20.73 billion from N17.79 billion in 2024. This was mainly supported by the buildup in cash holdings and prepayments, which rose to N2.07 billion. Inventories, however, declined to N5.52 billion from N6.65 billion, underscoring better stock management in a high-cost environment.
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On the liabilities side, the Lagos-based manufacturer reduced its total obligations to N8.37 billion from N9.04 billion, with dividend payables dropping significantly following payment of N1.96 billion to shareholders. The firm’s equity position strengthened by 16 per cent to N12.36 billion, supported by profit retention and a stable capital structure.
The 2025 financial year to date has seen CAP Plc extract better value from its operations despite cost pressures. Cost of sales increased by 18 per cent to N17.21 billion, slower than revenue growth, which helped lift gross margin to about 43 per cent. Administrative and marketing expenses rose moderately, reflecting higher staff and promotional costs tied to the firm’s market expansion initiatives.
Finance income, which dropped 33 per cent to N746 million due to lower interest yields, was offset by reduced finance costs of ₦39 million. The company’s earnings per share improved to N4.51, up from N3.24 in 2024, while net asset per share rose by 32 per cent to N15.17, indicating improved shareholder value creation.