Berger Paints Nigeria Records Stellar Performance in H1 2023
Lagos – Berger Paints Nigeria Plc, a foremost name in the Nigerian paint industry, has announced a significant 136.5% profit surge in the first half (H1) of 2023.
The impressive rise in profit, which reached N299 million, has been linked to a notable decrease in finance costs by 98.36%, settling at N667,000. This is a substantial drop from the previous year’s N10.9 million during the same period.
Key Performance Indicators: H1 2023 vs H1 2022
|Metrics||H1 2023||H1 2022|
|Finance Costs||N667,000||N10.9 million|
|Profit||N299 million||N126.4 million|
|Operating Profit||N438 million||N188 million|
|Revenue||N3.5 billion||N3 billion|
|Cost of Sales||N2.36 billion||N2.08 billion|
|Other Income||N49.7 million||N26 million|
|Operating Expenses||N794.6 million||N767 million|
|Finance Income||N2.37 million||N8.83 million|
|Net Cash (Operating Activities)||N313.6 million||N195.9 million|
|Net Cash (Investing Activities)||-N39 million||-N251.1 million|
|Net Cash (Financing Activities)||-N229.8 million||-N196.9 million|
|Cash & Cash Equivalents||N618.6 million||N467.9 million|
|Earnings Per Share||N103||N44|
|Total Equity & Liabilities||N5.52 billion||N4.94 billion|
Of special note is the company’s revenue growth, which observed a 16% increase, registering at N3.5 billion in H1 2023, as opposed to N3 billion in H1 2022. However, the cost of sales also saw an uptick, representing 66.6% of the revenue at N2.36 billion.
Berger Paints’ reduction in interest expenses on borrowings further elucidates their strategic financial management. These costs were trimmed down to N667,000 from a previous N8.139 million in H1 2022. This metric suggests that the company’s strategies in debt management and reduction of borrowing costs are paying off.
However, it wasn’t all green for Berger Paints. The finance income took a dip by 73.1%, plummeting to N2.37 million from the previous year’s N8.83 million. Yet, the net cash flow from the company’s operating activities witnessed growth, climbing from N195.9 million in H1 2022 to N313.6 million in the same period in 2023.
On the investment front, the company wisely reduced its net cash used by a whopping 84.5%, curbing it to N39 million, a drop from N251.1 million in the prior year. This is believed to be due to a decrease in investments in financial assets.
Despite the promising figures, the company reported a loss of N229.8 million in net cash used in financing activities in H1 2023, a slight increase from the loss of N196.9 million in 2022. This loss can be tied back to the higher dividends paid out during this period.
By the close of June 2023, Berger Paints’ cash and cash equivalents stood at a robust N618.6 million, showing a commendable rise from N467.9 million in H1 2022. Shareholders can also rejoice as the earnings per share have soared to N103 from N44 in the same period the previous year.
The company’s total equity and liabilities also saw growth, totaling N5.52 billion, up from N4.94 billion recorded in H1 2022.
Conclusion: Berger Paints Nigeria Plc’s H1 2023 financials show a company on an upward trajectory, with effective strategies in place, and robust financial health. The reduced financial costs and increased operating profits paint a promising picture for shareholders and potential investors alike.