CAP Plc Reports 29 Percent Decline in Profit in 2020 Financial Year

Chemical & Allied Products (CAP) Plc, a leading paints manufacturer in Nigeria, grew revenue by 3.9 percent from N8.4 billion in 2019 to N8.73 billion in the financial year ended December 31, 2020.

In the company’s audited financial statements, operating income declined by 26.6 percent to N1.5 billion in the year under review, down from N2.1 billion posted in 2019.

Profit before tax also declined by 29 percent from N2.54 billion achieved in the corresponding year to N1.8 billion in the year under review.

Similarly, profit for the year stood at N1.2 billion, against the N1.7 billion filed in 2019.

Total assets, however, rose from N6.76 billion in 2019 to N8.5 billion in 2020.

Despite the macroeconomic pressure, CAP Plc achieved 17 percent growth in volume across all its pain brands. The percentage volume growth of the brands was as follows: Dulux Decorative – 20%; Dulux Trade- (31%) Caplux- 30% and Industrial paint- 2%. In addition, your Company, for the first time, achieved above N1.06billion in net sales in the month of November 2020.

During the period under review, CAP Plc expanded its distribution footprint by opening 4 new Dulux Colour Shops and 4 Dulux Colour Centres across the country in the course of the year. In a bid to gain market share, a strategic decision to play more aggressively in the standard segment of the paint market was taken.