Chemical and Allied Products (CAP) Plc, a Nigerian paint and coating company, has announced its highest profit in over 13 years, as per data compiled by BusinessDay. In the past year, the company’s after-tax profit soared to N2.5 billion, marking a significant increase from N2.37 billion in 2022.
The notable increase in financial income can be attributed to various factors, including interest income on short-term bank deposits, interest income on finance leases, and exchange gains, all of which experienced substantial growth compared to the previous year. CAP Plc’s total revenue also saw a significant rise, reaching N23.8 billion, which represents a 23 percent increase from N19.2 billion. The majority of this revenue, amounting to N23.7 billion, came from sales of paint products, while an additional N96 million was generated from service revenue in 2023.
Additionally, the company’s sales margin increased to 37.8 percent per unit of product or service sold in 2023. However, CAP Plc also experienced a rise in its cost of sales, which increased to N14.8 billion, up by 28 percent from N11.5 billion in the previous year.
Source: Business Day