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CAP PLC’s full-year revenue gains N740m but rising costs weaken profit by 14%

CAP PLC’s full-year revenue gains N740m but rising costs weaken profit by 14%

Chemical and Allied Products (CAP) PLC Wednesday reported its Full-Year(FY) revenue for the 2019 financial year swelled by N740.335 million while its profit for the period went down by 14% as spiralling cost of doing business hurt earnings.

“Given the uncertainties and ongoing business developments, the Company cannot accurately and reliably estimate the quantitative impact of the outbreak (of the coronavirus) on the business.

“It is against this background that regrettably, the Board will not be recommending the payment of dividends to Shareholders,” Awunobia Ajumogobia, its chairperson said in the company’s Annual Report and Financial Statements posted by the Nigerian Stocks Exchange (NSE).

Read also: Custodian Investment’s Q1 profit falls to N1.86bn despite improved revenue

Revenue grew by 9.7% from N7.670 billion at FY2018 to N8.411 billion in the corresponding period this year.

Profit Before Tax slipped to N2.546 billion from N2.598 billion, contracting by over 2%.

Recording a decline of N287.255 million, profit for the year slumped from N2.029 billion to N1.742 billion.

Increases in Selling and Marketing Expenses, Administrative Expenses and Income Tax Expenses contributed mostly to the fall in profit.

(EPS) dipped by 14% from N2.90 to N2.49 while  Total Equity crumbled from N2.809 billion to N2.522 billion.

CAP PLC’s outstanding shares add up to  700 million units.

Price to Earnings (PE) ratio is 8.31 while its EPS IS 2.48.

The firm opened trade on the floor of the NSE on Thursday at N20.65 per share.

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