Portland paints, a crucial player in Nigeria’s paint industry and subsidiary of UAC Nigeria Plc, is hard hit by economic vicissitudes hurting many manufacturers.
Analysis of the company’s nine-month financial report shows that it recorded more declines in the 1st, 2nd and 3rd quarter of the year, although it spent 56 percent of its relative expenses on changes in the inventories of finished goods and items undergoing production.
On an average performance, the company revenue recorded a 1 percent increase from the N1.97 billion realised in 2018 to N1.99 billion in 2019.
On the other side of the coin, it suffered an 86 percent decline in its operating income, falling to N11.9 million in 2019 from N85.5 million in 2018. Profit from its operations dropped by 30 percent to N135 million.
Similarly, its profit before tax dropped by 24 percent from N185 million to N141 million while its total comprehensive income stood at N96 million, representing another 24 percent decline from the N126 million realised in 2018.
The firm’s gross profit declined slightly by 3 percent to N706 million from N730 million in 2018. Its assets declined by 2 percent, having had N2.25 billion in 2018 and N2.19 billion in 2019.
Portland Paints and Products Nigeria Plc deals in the manufacturing and sale of paints. The company is also the producer of Sandtex range of decorative and industrial coatings as well as Hempel marine and protective coatings for the oil and gas sector.
Paint makers are hurt by counterfeiting and high production costs which make them uncompetitive.
Manufacturers are also hard hit by poor infrastructure and high energy costs, including low consumer patronage and poor access to funds.
Frank Onyebu, chairman, Manufacturers Association of Nigeria (MAN) Apapa branch, said recently that manufacturers lose no less than N20 billion annually due to poor infrastructure.
Gbemi Faminu
