Chemical and Allied Products Plc (CAP) has declared a 61% increase in profit after tax to ₦6.12 billion for the year ended December 31, 2025, up from ₦3.81 billion in the prior year, driven by robust revenue expansion and improved operational efficiency, news.ng reports.
The Lagos-based manufacturing company’s revenue climbed 23% year-on-year to ₦44.86 billion from ₦36.36 billion, reflecting strong demand across its product portfolio despite challenging macroeconomic conditions.
Operating profit showed remarkable momentum, jumping 48% to ₦8.04 billion compared to ₦5.45 billion in 2024, as the company successfully managed its cost structure. Gross profit expanded 32% to ₦19.43 billion from ₦14.77 billion, demonstrating pricing power and operational leverage.
The bottom line was further bolstered by finance income, which surged 68% to ₦1.09 billion from ₦644.76 million, likely reflecting higher yields on cash holdings amid elevated interest rates. Profit before taxation rose 51% to ₦9.13 billion.
CAP’s financial position strengthened considerably during the period, with total assets and liabilities expanding 26% to ₦24.70 billion from ₦19.68 billion. Cash and cash equivalents nearly doubled, climbing 67% to ₦11.74 billion from ₦7.01 billion, providing substantial liquidity headroom.
Total assets grew to ₦24.70 billion from ₦19.68 billion, supported by inventory levels of ₦6.67 billion and trade receivables of ₦1.20 billion. The company maintained a healthy current asset position of ₦21.01 billion.
Earnings per share rose 61% to 751 kobo from 467 kobo, while net asset per share improved 38% to 1,800 kobo from 1,305 kobo, reflecting enhanced shareholder value creation. The company has proposed a dividend of 379.72 kobo per share.
Retained earnings climbed to ₦12.76 billion from ₦8.74 billion, strengthening the company’s capacity for future investments and dividend distributions.
While the company reduced capital expenditure on property, plant, and equipment by 51% to ₦907.06 million from ₦1.86 billion, depreciation charges increased 15% to ₦752.11 million, suggesting optimisation of the existing asset base rather than aggressive expansion.
Administrative expenses rose 18% to ₦7.32 billion, while selling and marketing expenses increased to ₦4.53 billion, tracking below revenue growth and indicating operating leverage.
The results underscore CAP’s resilience in navigating Nigeria’s complex operating environment, marked by foreign exchange volatility, inflationary pressures, and high interest rates.
