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Chemical and Allied Products Plc (CAP) has announced that its revenue rose from N8.4 billion in 2019 to N8.7 billion in 2020, resulting in a 3.9 per cent increase.
According to a filing obtained from the Nigerian Stock Exchange (NSE)’s website, the company’s audited financial result for the year ended December 31, 2020, revealed that the increase in revenue was driven by strong volume growth despite the disruptions in April, May and October.
However, the company’s gross profit declined by 5.8 per cent to N3.7 billion, with gross margin of 42.8 per cent due to input cost pressures on account of currency devaluation and supply chain disruptions.
Further analysis of the result showed that the company’s earnings per share dipped by 29.7 per cent to 175 kobo from 249 kobo in 2019 while net finance income declined by 41.3 per cent due to lower investment income yields in line with the interest rate environment. Consequently, the board and management of CAP Plc recommended a total dividend of 210 kobo per share.
Commenting on the results, the Managing Director, CAP Plc, David Wright, stated that the company 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 7 weeks of sales.
