Chemical and Allied Products Plc has reported a total profit of N1.2bn for the financial year 2020, compared to N1.7bn in FY 2019.
The company said in a statement on Thursday that its profit before tax declined by 29.1 per cent in 2020 on account of the combined effects of lost sales during lockdown, devaluation, and supply chain disruptions.
It said its revenue increased by 3.9 per cent from N8.4bn in 2019 to N8.7bn in 2020, driven by strong volume growth despite disruptions in April, May and October.
Free cash flow remained very strong at N1.2bn, signifying the continued strong cash generating ability of the company in spite of significant headwinds, according to CAP.
The Managing Director, CAP, David Wright, said, “CAP recorded modest top-line growth last year despite the COVID-19 lockdown in the second quarter of 2020 and protests in the fourth quarter of 2020, effectively losing seven weeks of sales.
“We are encouraged by the growth in revenue which has been solely driven by underlying volume growth in line with our strategy.
“Alongside the rest of the world, we experienced supply chain disruptions which impacted our raw material sourcing and resulted in input costs pressures.”
He said the company had embarked on initiatives focused on mitigating these disruptions, expecting to see positive results in 2021.
Wright said, “We announced the proposed merger between CAP and Portland Paints and Products Nigeria Plc in the fourth quarter of 2020.
“We have made significant progress and expect to conclude the merger in the second quarter of 2021, subject to receiving final regulatory approvals.”
He said that the board approved that a dividend of 210 kobo per ordinary share be recommended for payment to shareholders.
– Punch