Chemical and Allied Products Plc (CAP), Nigeria’s leading paint manufacturer, grew its profit after tax by 12.4 percent to N4.13 billion in the nine months ended September 2026, supported by higher revenue and improved operating performance.
The company’s unaudited financial statements showed that revenue rose 11.3 percent to N33.69 billion from N30.27 billion in the corresponding period of 2025, while operating profit increased 21.2 percent to N5.78 billion from N4.78 billion.
Profit before tax also grew by 20.8 percent to N6.62 billion, compared with N5.49 billion a year earlier, reflecting stronger earnings despite rising tax expenses.
However, CAP’s income tax expense increased 38 percent to N2.49 billion from N1.81 billion, moderating the growth in its bottom line. Consequently, profit after tax rose to N4.13 billion from N3.68 billion in the prior-year period.
The company’s earnings per share increased to 507 kobo from 451 kobo, indicating an improvement in returns attributable to shareholders.
Olalekan Aluko, managing director of CAP Plc, attributed the performance to the execution of the company’s growth strategy, investments in its workforce and improved operational efficiency.
‘We are pleased to report a strong performance for the first nine months of 2026, with revenue growing by 11 percent year-on-year and operating profit and profit before tax each increasing by 21 percent,’ Aluko said.
‘These results reflect the disciplined execution of our strategic growth initiatives, sustained investment in our people, and a continued focus on operational efficiency.’
He added that the company would maintain its focus on profitable growth and improving customer experience in the final quarter of the year.
‘As we enter the final quarter, we remain committed to delivering profitable growth, strengthening our organisational capabilities, and further enhancing the experience we offer our customers,’ he said.
A breakdown of the company’s earnings showed that gross profit increased to N14.44 billion from N13.06 billion, while cost of sales rose to N19.25 billion from N17.21 billion.
Selling and marketing expenses increased to N3.51 billion from N3.20 billion, while administrative expenses climbed to N5.52 billion from N5.40 billion, reflecting higher operating costs during the period.
Finance income rose 40.4 percent to N1.05 billion from N746.1 million, providing additional support to earnings. Finance costs, however, increased to N206.4 million from N39.1 million, largely reflecting higher lease interest and foreign exchange losses.
The company’s balance sheet also strengthened during the period. Total assets rose to N24.70 billion as of September 30, 2026, from N24.47 billion at the end of December 2025, while shareholders’ equity increased to N15.12 billion from N14.25 billion.
Cash and cash equivalents stood at N10.00 billion, down from N11.74 billion at the end of 2025, while inventories increased to N8.21 billion from N6.72 billion.
Despite the decline in cash balances, CAP generated N1.84 billion in net cash from operating activities during the nine months, compared with N3.52 billion in the corresponding period of 2025.
The current share price of CAP Plc (CAP) is N110. The company began the year with a share price of N69.00 and has since gained 59.4 percent on that price valuation, ranking it 41st on the NGX in terms of year-to-date performance.