Berger Paints Nigeria Plc has posted a seven-fold increase in its unaudited half-year results for the period ended June 30, 2025, with profit after tax surging by 614 percent to N624.6 million, up from N87.5 million recorded in the same period of 2024.
According to the company’s second-quarter 2025 financial statement, the earnings growth was primarily driven by a 23 percent rise in revenue to N6.16 billion from N5.02 billion a year earlier.
This was driven mainly by higher sales of paints and allied products, which accounted for the bulk of income, alongside contract services from its Swift Painting subsidiary, while customer demand for premium decorative and industrial paints remained robust despite the challenging economic climate.
This translated into a gross profit of N2.72 billion, up 88 percent year-on-year, showing that Berger Paints not only sold more but also extracted efficiency in production and supply chain management.
While operating expenses climbed during the review period, with administrative expenses rising to N1.44 billion from N1.04 billion, the company still delivered a sharp turnaround in profitability.
Operating profit jumped sixfold to N928.8 million, compared to N142.8 million in the same period of 2024. Finance income also supported performance, with interest income from financial assets surging to N37.7 million, a fivefold increase from last year, while finance costs slightly moderated to N20.7 million.
The result was a pre-tax profit of N945.8 million, significantly higher than N128.7 million in the first half of 2024. After accounting for tax expenses of N321.2 million, the net profit settled at N624.6 million.
Basic earnings per share rose to 216 kobo, compared to just 30 kobo in the prior year, representing a 620 percent improvement in shareholder value.
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The company also strengthened its financial position during the half-year. Total equity rose by 9% to N4.16 billion, supported by an increase in retained earnings to N3.38 billion.
On the liabilities side, Berger Paints reduced its current obligations from N2.85 billion at year-end 2024 to N2.58 billion by June 2025. This reduction came mainly from lower borrowings and improved settlement of trade payables.
The liquidity profile improved sharply, with cash and cash equivalents rising to N601 million at mid-year, compared with just N237 million at the close of 2024. This bolstered the company’s ability to fund operations and pay dividends without relying heavily on external borrowing.
Berger Paints’ earnings quality was further validated by its cash flow performance. Net cash generated from operating activities reached N871.6 million, compared with N250.8 million in the same period last year.
This improvement was driven by strong profit generation and a significant release of working capital, especially inventories, which fell to N2.89 billion from N3.30 billion at the end of 2024. The reduction reflects improved sales momentum and better inventory turnover.
Although the company invested N93.3 million in capital expenditure during the period and paid out N289.8 million in dividends, it still ended with a positive net cash increase of N363.8 million.
The strong financials have already translated into market value. Berger Paints’ share price rose by 52 percent, climbing to N32 as of August 2025 from N21 in January, pushing its market capitalisation to N9.27 billion.
