CAP Grows H1 Profit by 16% as Revenue Climbs to N22.41 Billion

Chemical and Allied Products (CAP) Plc delivered a stronger financial performance in the first half of 2026 with double-digit growth in revenue and profitability as the paint manufacturer benefited from higher sales, disciplined cost management and continued investment in retail expansion.

The company reported revenue of N22.41 billion for the six months ended June 30, 2026, representing a 12 percent increase from N20.09 billion recorded in the corresponding period of 2025.

Gross profit also improved, rising 11 percent year-on-year to N9.68 billion, while gross margin remained unchanged at 43 percent.

Operating profit advanced more strongly, climbing 20 percent to N3.81 billion from N3.18 billion a year earlier. Consequently, operating margin improved to 17 percent, up from 16 percent in the first half of 2025.

Profit before tax increased by 18 percent to N4.45 billion, compared with N3.78 billion in the same period last year.

After accounting for income tax expenses of N1.51 billion, profit after tax rose 16 percent to N2.94 billion, up from N2.53 billion recorded in the corresponding period of 2025.

Earnings per share also strengthened, increasing 16 percent from 311 kobo to 360 kobo, highlighting improved returns for shareholders.

For the second quarter alone, CAP generated N10.82 billion in revenue, an 8 percent increase from the corresponding quarter of 2025.

Quarterly operating profit edged 2 percent higher to N1.69 billion, while profit before tax remained broadly flat at N2.06 billion.

Commenting on the results, Managing Director Olalekan Aluko attributed the performance to the successful implementation of the company’s growth strategy, prudent cost management and investments aimed at expanding its retail footprint and improving operational efficiency.

He said the company remains focused on sustaining profitable growth in the second half of the year through innovation, operational excellence, employee development and improved customer experience.

“Our performance demonstrates the resilience of our business model and the effectiveness of our strategic initiatives. We remain committed to delivering innovative, customer-focused solutions while creating long-term value for shareholders and other stakeholders,” Aluko said.

On the balance sheet, total assets stood at N23.55 billion at the end of June, slightly lower than N24.47 billion recorded at the end of 2025.

Total liabilities declined 6 percent to N9.62 billion, while shareholders’ equity closed the period at N13.93 billion.

CAP, one of Nigeria’s leading paints and coatings manufacturers, markets brands including Dulux, Sandtex, Caplux and Hempel. The company is a subsidiary of UAC of Nigeria Plc, which holds a 57.85 percent equity stake.

The H1 performance reinforces CAP’s ability to expand earnings while maintaining healthy margins, positioning the company for continued growth as it deepens market penetration and strengthens operational efficiency in the second half of 2026.