Berger Paints Nigeria Plc, has reported a 136.5 per cent increase in profit to N299 million in the first half of 2023 from N126.4 million recorded in the corresponding period of 2022.
The leading brand in the coating and allied industry, said the strong turnover was driven by a 98.36 percent drop in finance costs to N667,000, from N10.9 million in the same period of 2022.
Berger Paints’ operating profit also appreciated to N438 million in the period under review from N188 million recorded in the first half of 2022. The reduction in finance costs also led to a decrease in interest expenses on borrowings, which dropped to N667,000 from N8.139 million in the same period of 2022.
This,according to the company, reflects sustained efforts to lower borrowing costs and the ability to generate sufficient cash and income to manage its debt and meet its payment obligations.
Notably, the company’s revenue was up by 16 percent to N3.5 billion in the first half of 2023, against N3 billion in the same period of 2022.
However, the cost of sales accounted for 66.6 percent of revenue, increasing to N2.36 billion in the first half of 2023 from N2.08 billion recorded in the same period of 2022.
Other income also experienced an increase, reaching N49.7 million in the first half of 2023 from N26 million in the same period of 2022.
Operating expenses saw a marginal rise of 3.6 percent, reaching N794.6 million in the first half of 2023 from N767 million in the same period of 2022.
On the flip side, there was a decrease in finance income by 73.1 percent, falling to N2.37 million in the first half of 2023 from N8.83 million in the same period of 2022.
The company’s financials also showed that net cash generated from operating activities rose from N195.9 million in the first half of 2022 to N313.6 million in the first half of 2023.
In terms of investing activities, net cash used was reduced by 84.5 percent, declining to N39 million in the first half of 2023 from N251.1 million in the same period of 2022. The reduction was attributed to decreased investments in financial assets.
The company further disclosed that net cash used in financing activities showed a loss of N229.8 million in the first half of 2023, compared to a loss of N196.9 million in the same period of 2022, due to higher dividends paid during the period.
As of June 30, 2023, the company’s cash and cash equivalents totalled N618.6 million, a notable increase from N467.9 million in the same period of 2022.
Meanwhile, earnings per share for the first half of 2023 rose to N103, compared to N44 in the same period of 2022, while total equity and liabilities amounted to N5.52 billion in the first half of 2023 from N4.94 billion recorded in the same period of 2022.
