CAP Plc’s Full Year profit shrinks by N247m despite improved earnings

Chemical and Allied Products (CAP) Plc, a subsidiary of UACN Plc, has reported a 12% fall in its profit for Full Year 2019 compared to the corresponding period of 2018.

The full details of the company’s financials are contained in its Financial Statements for the Year Ended 31 December 2019, posted on the website of the Nigerian Stock Exchange (NSE) yesterday.

Revenue grew by 10% to N8.411 billion at FY2019, up from N7.670 billion at FY2018.

Profit Before Taxation (PBT) shed 2%, dropping from N2.598 billion at FY2019 to N2.546 billion at FY2018.

Profit for the Year slumped to N1.782 billion at FY2019 from the N2.029 billion posted in the corresponding period of 2018, translating to a 12% drop.

Read also: Airtel Africa’s Q3 profit plunges by $30m despite improved earnings

A notable decline in CAP’s operational efficiency accounted primarily for the plunge in profit. For instance, Selling and Distribution Expenses rose from N262.518 million at FY2018 to N584.238 million at FY2019, soaring by 122.6% in the process.

Similarly, Administrative Expenses inched up by 17.6% from N1.150 billion at FY2018 to N1.352 billion at FY2019.

Earnings Per Share (EPS) dipped from N2.90 at FY2018 to N2.55 at FY2019, representing a 12.1% depreciation.

CAP Plc, owner of the Dulux brand, currently trades on the floor of the NSE at N27.5.

Earnings Per Share is the profit that each unit of a company’s ordinary shares  yields  during a particular period. It is simply calculated by dividing the Profit After Tax by the company’s total outstanding shares.  Increase in a company’s EPS often reflects an improvement in its bottom-line while a fall, on the other hand, indicates a declining profit.

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