Nigeria’s leading paint manufacturing companies reported a 134.3 percent rise in their net cash flow from operations in the first quarter of 2025, driven by rising earnings and strategic cost-cutting measures.
BusinessDay analysis of major industry players, including Chemical and Allied Products (CAP Plc), Berger Paints Nigeria Plc, and Meyer Plc, recorded a 22.2 percent rise in earnings to N14.1 billion, up from N11.5 billion. This reflects improved consumer demand and pricing strategies amidst persistent inflationary pressures.
CAP Plc posted robust financials, with earnings before interest and taxes (EBIT) of N903.55 million in Q1, indicating stable operating performance despite inflationary challenges. Its net operating cash flow also saw a positive turnaround to N521 million, driven by improved working capital management and a more efficient production process.
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Bolarin Okunowo, CAP’s managing director, said, “We are pleased to announce our Q1 2025 results, with a 19 percent growth in revenue and a 43 percent increase in operating profit, reflecting the fruits of various growth and efficiency initiatives put in place in the company, including expanding our retail footprint and protecting operating margins.”
Berger Paints reported an 86 percent year-on-year increase in net operating cash flow, driven by a 20.8 percent rise in revenue and improved collections from trade receivables.
While Meyer Plc recorded a 73.2 percent growth in revenue, its net cash generated from operations declined by 64 percent, driven by a fall in finance income during the period.
When a company reports increased net cash from operating activities, it means that the business is generating more cash from its core operations, that is, from selling paint and related products/services, compared to a previous period.
Industry analysts say the strong performance signals a shift in the sector’s resilience, particularly as businesses adapt to economic headwinds such as high energy costs, foreign exchange volatility, and fluctuating raw material prices.
Read also: Nigeria’s largest paint maker grows earnings amid headwinds
Despite these challenges, according to Statista, a real-time data platform, the revenue generated in Nigeria’s Paint, Wallpaper & Supplies market in 2025 amounted to $2.69 billion. The market is projected to experience an annual growth rate of 3.88 percent (CAGR 2025–2029).
However, the data also noted that, on a global scale, the United States leads in revenue generation, with an estimated $52.96 billion in 2025.
Investors responded positively to the earnings, with shares of Berger Paints and Meyer gaining 2.09 percent and 4.14 percent year-to-date, respectively, on the Nigerian Exchange (NGX) following the disclosures.
