CAP Plc Lifts Q3 2025 Profit to N1.17 Billion on Strong Paint Sales: Driving Growth in Nigeria’s Coatings Market.
Chemical and Allied Products Plc (CAP Plc), Nigeria’s leading paints and coatings manufacturer, has delivered an exceptional Q3 2025 performance, solidifying its market leadership through strong top-line growth and effective cost management. The results highlight the company’s resilience and strategic positioning within the growing, yet challenging, Nigerian construction and coatings sector.
The company’s profit surge is a significant indicator of its operational efficiency, translating robust revenue into high profitability despite persistent inflationary and foreign exchange pressures in the broader economy.
Key Financial Highlights (Q3 2025 vs. Q3 2024)
CAP Plc reported a profit before tax (PBT) of N1.71 billion for Q3 2025, marking a remarkable 35.5% increase from N1.26 billion recorded in the corresponding quarter of 2024. This lifted the nine-month (9M) PBT to N5.4 billion, a substantial 39% jump year-on-year.
| Metric | Q3 2025 (N’bn) | Q3 2024 (N’bn) | Change (YoY) |
|---|---|---|---|
| Revenue | $10.18$ | $8.03$ | $+26.7\%$ |
| Gross Profit | $4.34$ | $3.46$ | $+25.5\%$ |
| Operating Profit | $1.60$ | $1.21$ | $+32.2\%$ |
| Profit Before Tax | $1.71$ | $1.26$ | $+35.5\%$ |
| Profit After Tax | $1.14$ | $0.84$ | $+35.6\%$ |
| Earnings Per Share (kobo) | $141$ | $104$ | $+35.6\%$ |
Section 1: Revenue Momentum Powered by Core Paint Business
The foundation of CAP Plc’s success remains its core paint manufacturing business, which leverages flagship brands like Dulux and Sandtex in the Nigerian market.
Strong Top-Line Growth: Revenue for Q3 2025 grew by $26.7\%$ year-on-year to reach N10.18 billion. The nine-month revenue figure reinforced this trend, rising to N30.27 billion (up from N23.65 billion in 9M 2024).
The sustained demand for decorative and industrial coatings is a direct reflection of underlying drivers in the Nigerian market, including urbanization, real estate construction, and infrastructure projects, which analysts project will support a $4\%$ annual growth in the coatings market through 2029.
For the nine-month period, paint sales accounted for N30.2 billion of the total revenue, underscoring the dominant contribution of the company’s manufacturing expertise to its financial health.
Section 2: Margin Resilience Amidst Cost Headwinds
The most impressive aspect of the report is the company’s ability to convert higher sales into significantly stronger profits, a crucial achievement in an environment plagued by volatile raw material costs and foreign exchange fluctuations.
Managing Cost Pressures: While the cost of sales (CoS) rose by $27.5\%$ to N5.8 billion, CAP Plc demonstrated superior margin control. The increase in operating profit (up $32.2\%$ to N1.60 billion) outpaced the growth in operating expenses, indicating that the company successfully utilized higher pricing and efficient production planning to maintain and even expand its gross margins.
Despite administrative expenses climbing $16.3\%$ to N1.75 billion and selling/marketing expenses jumping $31.8\%$ (reflecting continued investment in brand and customer outreach), the operational efficiency gains allowed the operating profit to grow faster than the revenue rate, a sign of effective cost containment and scale advantages.
Section 3: Balance Sheet Strength and Liquidity
Beyond the income statement, CAP Plc’s balance sheet strengthened considerably, signaling improved liquidity and reduced financial risk.
Improved Liquidity: Cash and cash equivalents rose by $9.8\%$ to N7.70 billion, reflecting strong cash generation from operations. Reduced Liabilities: Total liabilities saw a notable decrease, falling to N8.37 billion from N9.04 billion in the prior year. This reduction, coupled with an increase in equity to N12.36 billion (up 16% YoY), suggests a more robust and de-risked capital structure. Shareholder Value: The strong profit growth translated directly into improved shareholder returns, with earnings per share (EPS) jumping to 141 kobo from 104 kobo.
Outlook and Investor Takeaway
CAP Plc’s Q3 2025 results demonstrate that its strategy of focusing on premium and standard paint segments while aggressively managing operational costs is highly effective. The performance is not merely a reflection of recovering demand but of strategic execution—the ability to pass on raw material inflation through pricing power while simultaneously improving production efficiency.
As Nigeria’s construction sector is expected to maintain its positive trajectory, CAP Plc, with its strengthened balance sheet and proven ability to expand margins, is exceptionally well-positioned to capitalize on future growth opportunities and solidify its status as a profitable leader in the West African coatings industry.
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