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CAP Profit After Tax Declined by 24.4 Percent in First Nine Months of the Year

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CAP Paint - Investors King

CAP Posted N928 Million Profit After Tax in First Nine Months of the Year

Chemical and Allied Products Plc (CAP), one of Nigeria’s leading paints manufacturers, reported a 24.4 percent decline in profit after tax in the nine months ended September 30, 2020.

In the financial results signed by Chinwe Okpala, Head, Corporate Affairs and Communications, CAP Plc, the paints manufacturer grew revenue by 3.7 percent year-on-year to N6 billion during the period under review. This represents a 10.8 percent increase when compared to the same period of 2019 when there was no COVID-19 pandemic.

This, the company said was due to 33.7 percent growth recorded in the third quarter when the Federal Government eased lockdown and opened up the economy.

However, the company’s gross profit declined by 2.1 percent year-on-year during the period to N2.7 billion. Largely due to surge in operating cost because of the disruption of global supply chain, rising inflation and double currency devaluation.

Also, profit before tax declined to N1.4 billion, “reflecting a decline of 850 basis points on Profit Before Tax margin due to the decline in operating profit; and a 40.6% decline in net finance income due to lower investment income yields compared to prior year,” the report reads.

Profit after tax declined by 24.4 percent from N1.2 billion achieved in the same period of 2019 to N928 million in the period under review.

Accordingly, earnings per share dipped by 24 percent from 175 kobo posted in corresponding period of 2019 to 133 kobo in the first nine months of 2020.

Speaking on the company’s performance, David Wright, Managing Director, David Wright, said: “In the last quarter of 2019, CAP embarked on a new growth strategy focused on creating value for our shareholders and we are encouraged by the top line growth thus far. CAP’s performance in 2020 has been affected by COVID-19, particularly in April and May as a result of the stringent movement restrictions which constrained production and led to supply chain disruptions.

“Despite the challenging operating environment, we achieved strong revenue and volume growth of 34% and 34.6% respectively in the third quarter of the year. Going forward, we expect to continue to see the positive effects of our growth strategy on our sales and remain focused on managing operating costs to deliver on profit ambitions in the fourth quarter.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Bonds

Federal Government of Nigeria: Listing of the two (2) FGN Savings Bonds Issued in July 2021

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Bonds- Investors King

Trading Licence Holders are hereby notified that the July 2021 Issue of the Federal Government of Nigeria (FGN) Savings Bonds were listed on the Nigerian Exchange Limited on 26th July 2021.

Below are the details of the Bonds:

Bond - Investors King

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Dividends

Two Dividends Declare Last Week

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Dividend - Investors King

Cutix Plc and Custodian Investment are two listed companies that declared Dividends last week as listed below.

CUTIX PLC.

Proposed Dividend: ₦0.15
Proposed Bonus: 1 FOR 1
Qualification Date: 11/12/2021
AGM Date: 11/26/2021
Payment Date: 11/29/2021.

Closure of Register Date: 11/15/2021

CUSTODIAN INVESTMENT PLC.

Proposed Dividend: ₦0.10
Proposed Bonus: null FOR null
Qualification Date: 8/20/2021
AGM Date:
Payment Date: 9/1/2021
Closure of Register Date: 8/23/2021

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Nigerian Stock Exchange

Equities Investors Lose N63 Billion Last Week

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Stock - Investors King

The Nigerian Exchange Limited (NGX) returned to bearish last week despite strong second-quarter reports from listed companies.

Investors traded total shares of 1.374 billion worth N11.823 billion in 22,982 transactions last week, against a total of 896.174 million shares valued at N5.235 billion that exchanged hands in 11,714 deals in the previous week.

In terms of volume traded, the financial services industry led the activity chart with 715.394 million shares valued at N4.745 billion traded in 10,274 deals. Therefore, contributing 52.06 percent and
40.13 percent to the total equity turnover volume and value, respectively.

The Conglomerates Industry followed with 212.340 million shares worth N517.613 million in 1,060 deals. The third place was Oil and Gas Industry, with a turnover of 153.440 million shares worth N1.597 billion in 3,076 deals.

Transnational Corporation Of Nigeria Plc, Oando Plc and Fidelity Bank Plc were the three most traded equities during the week. The three accounted for 378.863 million shares worth N995.477 million in 2,998 deals, therefore, they contributed a combined 27.57 percent and 8.42 percent to the total equity turnover volume and value, respectively

The NGX All-Share Index declined by 0.31 percent or 120.82 index points from 38,667.90 index points posted in the previous week to 38,547.08 index points last week.

Similarly, market capitalization depreciated by 0.31 percent or N63 billion to close at N20.084 trillion last week, down from N20.147 trillion.

All other indices finished lower with the exception of NGX Premium, NGX Consumer Goods, NGX Oil/Gas and NGX Sovereign Bond indices which appreciated by 0.02 percent, 0.06 percent, 3.84 percent and 1.97 percent respectively, while the NGX ASeM and NGX Growth Indices closed flat.

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