Chemical and Allied Products Plc (CAP Plc), one of Nigeria’s leading paint manufacturers, has reported a strong financial performance for the third quarter (Q3) of 2025, highlighting steady growth across key performance indicators. The company posted a profit before tax (PBT) of N1.71 billion, representing a 36% increase compared to N1.26 billion recorded in the same period of 2024.
The improved earnings performance was largely driven by robust paint sales, enhanced cost management, and efficient operational strategies. CAP Plc’s consistent focus on product innovation and expanding market reach helped strengthen its revenue base despite persistent inflationary pressures and foreign exchange volatility in the business environment.
For the nine months ending September 2025, CAP Plc recorded a cumulative pre-tax profit of N5.4 billion, up 39% year-on-year from N3.9 billion in the corresponding period of 2024.
Key Financial Highlights (Q3 2025 vs Q3 2024)
Revenue: N10.18 billion (+26.7%)
Gross Profit: N4.34 billion (+25.5%)
Operating Profit: N1.60 billion (+32.2%)
Finance Income: N107 million (+51.7%)
Profit Before Tax: N1.71 billion (+35.5%)
Profit After Tax: N1.14 billion (+35.6%)
Earnings Per Share (EPS): 141 kobo (up from 104 kobo)
Total Assets: N20.7 billion (+5.3%)
Retained Earnings: N10.4 billion (+19.7%)
Revenue Growth Anchored by Strong Paint Sales
Revenue for the quarter grew by 26.7% year-on-year to N10.18 billion, buoyed by sustained demand across CAP Plc’s premium and mid-range paint categories. For the first nine months of 2025, total revenue reached N30.27 billion, compared to N23.65 billion in the same period of the previous year — a testament to the company’s dominant position in Nigeria’s decorative paints market.
Paint sales alone contributed a significant portion of revenue, accounting for N30.2 billion, while an additional N46.2 million came from related services. The company’s gross profit climbed 25.5% to N4.34 billion, supported by effective cost management, improved supply chain efficiency, and better raw material sourcing strategies that mitigated input cost pressures.
Resilient Profitability Despite Rising Costs
Despite ongoing cost challenges, including rising inflation and increased production expenses, CAP Plc demonstrated strong operational efficiency. The cost of sales rose 27.5% to N5.8 billion, up from N4.5 billion in Q3 2024, primarily due to higher raw material prices and logistics costs.
Administrative expenses also climbed 16.3% to N1.75 billion, reflecting increases in personnel costs and overhead expenses. Meanwhile, selling and marketing expenses surged 31.8% to N1.07 billion, underscoring the company’s continued investment in brand visibility, promotional activities, and customer engagement.
Despite these headwinds, CAP Plc achieved an operating profit of N1.60 billion, representing a 32.2% year-on-year increase. The company successfully translated top-line growth into improved bottom-line performance, highlighting management’s effectiveness in balancing expansion with cost control.
Profit before tax rose 35.5% to N1.71 billion, while profit after tax increased 35.6% to N1.14 billion, driven by higher operating income and reduced finance costs. Earnings per share advanced to 141 kobo, up from 104 kobo a year earlier, reflecting enhanced shareholder value creation.
Strengthened Balance Sheet and Liquidity Position
CAP Plc’s balance sheet remained solid through the third quarter, with strong liquidity and reduced liabilities. Cash and cash equivalents improved by 9.8% to N7.70 billion, demonstrating the company’s healthy cash flow generation.
Total assets grew 5.3% year-to-date to N20.73 billion, while total liabilities declined from N9.04 billion to N8.37 billion, reflecting prudent debt management and efficient capital allocation. Shareholders’ equity increased to N12.36 billion, compared to N10.64 billion in the previous year, signifying improved retained earnings and reinvestment in core operations.
Outlook
CAP Plc remains optimistic about sustaining growth momentum through the remainder of 2025. The company plans to continue leveraging its brand strength, nationwide distribution network, and innovation-driven product portfolio to deepen market penetration and enhance customer loyalty.
While macroeconomic challenges — such as inflation, exchange rate volatility, and high input costs — remain, CAP Plc’s disciplined operational execution, strategic cost optimization, and commitment to product excellence position it well for continued profitability in the Nigerian paints and coatings industry.
With a clear focus on efficiency and growth, the company’s third-quarter results reaffirm CAP Plc’s status as a resilient player in Nigeria’s manufacturing sector and a consistent value creator for its shareholders.
