CAP declares N1.43bn dividend, eyes market share growth
Chemical and Allied Products Plc has declared a total dividend of N1.435bn, representing 205 kobo for every 50 kobo ordinary share, for the year ended December 31, 2017.
The company presented its annual report to shareholders on Tuesday, at its 53rd Annual General Meeting, in Lagos.
“The business will respond appropriately to the emerging paint market trends and different economic scenarios by growing our market share, increasing product and service offerings, expanding trade channels, implementing impactful and aggressive marketing initiatives and continuing to build people capabilities,” the Chairman, CAP, Larry Ettah, said.
He noted that the state of the Nigerian economy and the business environment in 2017 remained challenging, although marginal improvement was witnessed over the previous year’s performance.
He said economic activities were weak as key macro-economic indicators remained unsteady.
Ettah said, “The 2017 business landscape was inundated with the effects of devaluation of the naira, scarcity of the US dollar, high cost of funds and low consumer spend. Despite these challenges, CAP expanded its distribution channel by opening five Dulux Colour Shops and appointed nine Caplux distributors in the open market. We will work with these distributors to achieve growth in the brand’s topline in 2018.
“The successful inauguration of our automated in-plant tinting factory was a noteworthy achievement in 2017. The automated factory will ensure that emulsion paints are promptly and readily available to customers. The colour retention attribute of emulsion paints was also enhanced as a result of the in-plant tinting formulation.”
According to the chairman, the company retained its ISO 9001:2008 and achieved re-certification of ISO 14001:2004 on quality and environmental management systems, respectively.
“We continue to offer high-quality products and services to customers while complying with regulatory requirements and conduct our operations in a healthy and safe manner, ensuring minimal impact on the environment,” Ettah stated.
He said despite the difficult operating environment in 2017, the company ended the year with a respectable performance.
He said, “The business recorded a sales turnover of N7.11bn, representing a growth of four per cent over previous year. The operating profit was N1.98bn, a decline of seven per cent over 2016.
“The recovery recorded in the Nigerian economy in 2017 is expected to be sustained in 2018. This will be driven by the trickle-down effect of the upsurge in oil output as observed in 2017. The growth in other sectors of the economy, especially the service and manufacturing sectors, remains weak, therefore making the overall growth outlook vulnerable to the fortunes of oil.”