By Seun Ibiyemi
Berger Paints Plc has released its audited 2025 financial results on the Nigerian Exchange Limited, reporting a pretax profit of N2.4 billion, representing a 116.43 per cent year-on-year increase.
The strong performance was driven by improved revenue, with total sales rising by 19.93 per cent to N12.9 billion from N10.8 billion recorded in 2024, reflecting sustained demand across its product lines.
The company disclosed that paints and allied products generated N15.8 billion in revenue; however, discounts and rebates amounting to N2.8 billion reduced net sales to N12.9 billion.
Despite cost pressures, Berger Paints maintained profitability, growing earnings per share from N2.11 to N5.42. The board proposed a final dividend of N1.25 per 50 kobo share, payable on May 21, 2026.
An analysis of the company’s cost structure showed that cost of sales increased modestly by 4 per cent to N7.2 billion, compared to N6.9 billion in the previous year. Raw materials and consumables accounted for the largest share at N6.27 billion, largely unchanged from N6.26 billion in 2024.
Gross profit rose significantly to N5.7 billion from N3.8 billion in the prior year, supported by revenue growth and relatively stable input costs.
Other income stood at N61.7 million, derived mainly from property leases and scrap sales.
Operating expenses, however, trended upward, with selling and distribution costs increasing by 3.53 per cent to N713.9 million, while administrative expenses rose sharply by 26.15 per cent to N2.7 billion.
This resulted in an operating profit of N2.3 billion, up from N1.1 billion recorded in 2024.
The company also reported net finance income of N97.9 million, which supported earnings growth and contributed to the pretax profit of N2.4 billion.
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After accounting for taxes of N872.4 million, profit after tax stood at N1.5 billion, compared to N610.8 million in the previous year.
On the balance sheet, total assets increased to N9.06 billion from N7.5 billion, with inventory valued at N2.7 billion and property, plant and equipment at N2.6 billion forming the largest asset components.
Total equity rose by 30.43 per cent to N4.9 billion, driven mainly by retained earnings of N4.2 billion. Total liabilities stood at N4.07 billion, with trade and other payables accounting for N2.05 billion.
As of mid-trading on March 2, 2026, Berger Paints’ shares remained flat on the Nigerian Exchange, showing no immediate reaction to the strong financial results.
However, the stock has gained over 58 per cent year-to-date, with trading volume exceeding 20 million shares.
