COMPANY PERFORMANCE: CHEMICAL AND ALLIED PRODUCTS PLC (CAP)
1. Profit Decline:
- Second Quarter 2024: CAP's profit after tax fell by 42%, dropping from N895 million in Q2 2023 to N517 million in Q2 2024.
- Pre-Tax Profit: Also decreased by 42%, from N1.3 billion in Q2 2023 to N772 million in Q2 2024.
2. Revenue:
- Increased by 22%, rising to N7.1 billion in Q2 2024 from N5.8 billion in Q2 2023.
3. Gross Profit:
- Rose by 11%, reaching N2.5 billion from N2.3 billion in Q2 2023.
- The gross margin contracted from 39% to 35% due to higher raw material and conversion costs.
4. Operating Profit:
- Decreased by 33%, falling to N569 million from N848 million in the previous year.
- Operating margin decreased by 6.6 percentage points to 8%, impacted by inflationary pressures.
5. Operating Expenses:
- Increased by 37%, from N1.5 billion to N2.0 billion.
- Selling and marketing expenses grew by 27%, and administrative expenses rose by 43%.
6. Other Income and Finance:
- Other operating income increased by 48% to N92 million.
- Net finance income dropped by 58% to N203 million.
- Finance income fell by 64% from N578 million to N209 million, while finance costs were reduced by 94% to N6 million.
7. Earnings Per Share:
- Decreased by 42% to 63 kobo in Q2 2024 from N1.09 in Q2 2023.
8. First Half 2024 Performance:
- Revenue increased by 60% to N15.6 billion compared to N9.8 billion in H1 2023.
- Gross profit was 53% higher at N5.6 billion, though the gross margin contracted slightly to 36%.
- Operating profit increased by 32% to N1.6 billion.
- Profit before tax rose by 40% to N2.7 billion.
- Earnings per share increased by 40% to 220 kobo from 157 kobo in H1 2023.
9. Management Commentary:
- Managing Director Bolarin Okunowo noted the challenging macroeconomic conditions expected in the second half of the year.
- The focus will be on balancing customer satisfaction, maintaining margins through operational optimization, and achieving strategic growth.
1. Profit Decline:
- Second Quarter 2024: CAP's profit after tax fell by 42%, dropping from N895 million in Q2 2023 to N517 million in Q2 2024.
- Pre-Tax Profit: Also decreased by 42%, from N1.3 billion in Q2 2023 to N772 million in Q2 2024.
2. Revenue:
- Increased by 22%, rising to N7.1 billion in Q2 2024 from N5.8 billion in Q2 2023.
3. Gross Profit:
- Rose by 11%, reaching N2.5 billion from N2.3 billion in Q2 2023.
- The gross margin contracted from 39% to 35% due to higher raw material and conversion costs.
4. Operating Profit:
- Decreased by 33%, falling to N569 million from N848 million in the previous year.
- Operating margin decreased by 6.6 percentage points to 8%, impacted by inflationary pressures.
5. Operating Expenses:
- Increased by 37%, from N1.5 billion to N2.0 billion.
- Selling and marketing expenses grew by 27%, and administrative expenses rose by 43%.
6. Other Income and Finance:
- Other operating income increased by 48% to N92 million.
- Net finance income dropped by 58% to N203 million.
- Finance income fell by 64% from N578 million to N209 million, while finance costs were reduced by 94% to N6 million.
7. Earnings Per Share:
- Decreased by 42% to 63 kobo in Q2 2024 from N1.09 in Q2 2023.
8. First Half 2024 Performance:
- Revenue increased by 60% to N15.6 billion compared to N9.8 billion in H1 2023.
- Gross profit was 53% higher at N5.6 billion, though the gross margin contracted slightly to 36%.
- Operating profit increased by 32% to N1.6 billion.
- Profit before tax rose by 40% to N2.7 billion.
- Earnings per share increased by 40% to 220 kobo from 157 kobo in H1 2023.
9. Management Commentary:
- Managing Director Bolarin Okunowo noted the challenging macroeconomic conditions expected in the second half of the year.
- The focus will be on balancing customer satisfaction, maintaining margins through operational optimization, and achieving strategic growth.