Chemical and Allied Products Profit Jumps 61% on Strong 2025 Performance

Chemical and Allied Products Plc recorded a strong earnings performance in the 2025 financial year with profit after tax rising by 61 percent to ₦6.12 billion, supported by revenue growth, operating efficiency, and improved finance income.

Revenue for the year ended December 31, 2025 increased to ₦44.86 billion, from ₦36.36 billion in 2024, representing a 23 percent year-on-year growth.

The performance reflects improved sales volumes, pricing adjustments, and sustained demand across the company’s product portfolio despite a challenging operating environment.

Operating profit rose sharply to ₦8.04 billion, compared with ₦5.45 billion in the previous year, translating to a 48 percent increase.

The faster growth in operating profit relative to revenue indicates meaningful margin expansion, driven by better cost management and operating leverage.

Finance income also contributed to earnings growth, rising by 68 percent to ₦1.09 billion from ₦644.8 million in 2024. As a result, profit before tax climbed 51 percent to ₦9.13 billion, up from ₦6.06 billion a year earlier.

Tax expenses increased to ₦3.01 billion, from ₦2.26 billion, reflecting higher taxable earnings. Despite this, net profit still rose significantly, underscoring the strength of underlying operations.

Earnings per share increased in line with profitability, rising to 751 kobo from 467 kobo, reinforcing improved value creation for shareholders.

Net asset value per share also strengthened, climbing 38 percent to ₦18.00, supported by retained earnings and balance sheet growth.

Liquidity improved materially during the year, with cash and cash equivalents rising 67 percent to ₦11.74 billion, compared with ₦7.01 billion in 2024.

The stronger cash position enhances financial flexibility and provides headroom for future investment, working capital needs, or shareholder returns.

On the balance sheet, total equity and liabilities expanded to ₦24.70 billion, up 26 percent year on year.

Capital expenditure moderated during the period with additions to property, plant, and equipment declining to ₦907 million, compared with ₦1.86 billion in the prior year, suggesting a shift from heavy investment to consolidation.

Overall, the 2025 financial performance highlights Chemical and Allied Products Plc’s ability to convert revenue growth into stronger profitability, maintain cost discipline, and strengthen its balance sheet.

The combination of rising earnings, improved liquidity, and expanding net asset value positions the company on a solid footing as it enters the next financial year.