Chemical and Allied Products Plc (CAP), a paints and decorative producer posted N8.7 billion as revenue for the 2020 financial year.
This is according to its audited results with revenue increasing by 3.6 percent from N8.4bn in 2019.
It said the growth was chiefly driven by strong volume growth despite the disruptions in April, May and October (lockdown and EndSARS).
However, it said the gross profit was affected by currency devaluation and supply chain disruptions from COVID-19 which led to a 5.8% decline but the gross margins remained strong at 42.8% while finance income was impacted by low interest rate environment.
The company’s Profit Before Tax (PBT) and total profit declined by 29.1% and 29.8% respectively on account of the combined effects of lost sales during lockdown, devaluation and supply chain disruptions.
The management will then propose a dividend recommendation of 210 kobo per share, at the next Annual General Meeting (AGM).
Commenting on the performance, the Managing Director, David Wright said: “We are encouraged by the growth in revenue.
“We announced the proposed merger between CAP and Portland Paints and Products Nigeria Plc in the fourth quarter of 2020. We have made significant progress and expect to conclude the merger in the second quarter of 2021, subject to receiving final regulatory approvals.”