CAP grows revenue by 3.9% to N8.7bn in 2020

Chemical and Allied Product (CAP) Plc   has recorded N8.7 billion revenue for the year ended December 31, 2020, representing a 3.9 percent increase over N8.4 billion posted in 2019 financial year end.

This is even as the company said it hopes to conclude its planned merger with its sister company – Portland Paint and Products Plc – before the end of the first quarter (Q1) 2021 if both regulatory and shareholders’ approval are secured to that effect.

Meanwhile, the company said in a statement that the growth in its revenue for the year was driven by strong volume growth despite “the disruptions in April, May and October 2020.”

The Profit Before Tax (PBT), however, declined by 25.5 percent to N1.9 billion from N2.55 billion following a  41.1 percent decline in net finance income on account of lower investment income yields coupled with decline in EBIT.

Commenting on the performance,   David Wright, Managing Director, CAP Plc, 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. “We have embarked on initiatives focused on mitigating these disruptions and expect to see positive results in 2021.”