CHEMICAL AND ALLIED PRODUCTS : EARNINGS RELEASE

Chemical and Allied Products Plc - Q2 and H1 2023 Unaudited Results

NGX Ticker: CAP

PRESS RELEASE

Regulated Information

Financial Results for the Period ended 30 June 2023

Lagos, 31 July 2023 - Chemical and Allied Products Plc ("CAP" or the "Company"), Nigeria's leading paints and coatings company, on July 27, 2023 announced its unaudited results for the half year ended 30 June 2023.

Highlights

• Revenue at N9.8 billion, an increase of 12% compared to N8.7 billion in H1 2022.
• Gross profit 3% higher at N3.6 billion. Gross margin at 37%, lower by 3.0 percentage points on account of higher raw material and distribution costs.
• Operating profit 6% lower YoY at N1.2 billion with operating margin contracting by 2.4 percentage points to 13%.
• Profit before tax of N1.9 billion, up 44% from N1.3 billion in H1 2022.
• Profit after tax (net profit) of N1.3 billion, up 42% YoY with net profit margin at 13%.

Commenting on the results, Managing Director, Bolarin Okunowo, stated:

"We are delighted with our strong recovery in Q2 as election-related uncertainties eased. Given our strong performance in the second quarter, we recorded meaningful revenue growth of 12% and a 42% increase in profit after tax in H1 2023. We are encouraged by the strength and resilience of our financial results, despite the challenging macroeconomic environment. Whilst we expect that the impact of recent policy changes on our operating environment will continue into the second half of the year, we believe that we are well positioned for growth, with the ability to meet the evolving needs of our customers".

Performance Summary

In million ₦, unless otherwise stated	Q2 2023	Q2 2022	YoY	H1 2023	H1 2022	YoY
Revenue	5,806	4,089	42%	9,777	8,745	12%
Gross Profit	2,279	1,707	34%	3,637	3,514	3%
Gross Margin (% of Revenue)	39%	42%	(2.5 pp)	37%	40%	(3.0 pp)
Other Operating Income	62	35	77%	172	76	126%
Selling & Marketing expenses	(535)	(445)	20%	(876)	(896)	(2%)
Administrative expenses	(958)	(785)	22%	(1,695)	(1,374)	23%
Operating Expenses	(1,493)	(1,231)	21%	(2,570)	(2,270)	13%
Operating Expenses (% of Revenue)	26%	30%	(4.4 pp)	26%	26%	0.3 pp
Operating Profit	848	511	66%	1,239	1,320	(6%)
Operating Margin (% of Revenue)	15%	12%	2.1 pp	13%	15%	(2.4 pp)
Finance Income	578	37	1,451%	787	10	7,681%
Finance Cost	(91)	(0.4)	23,156%	(113)	(1)	14,044%
Net Finance Income	488	37	1,221%	673	9	7,134%
Profit Before Tax	1,335	548	144%	1,912	1,329	44%
Profit before Tax Margin (% of Revenue)	23%	13%	9.6 pp	20%	15%	4.4 pp
Income Tax Expense	(444)	(175)	153%	(631)	(425)	48%
Profit After Tax	892	373	139%	1,281	904	42%
Profit after Tax Margin (% of Revenue)	15%	9%	6.2 pp	13%	10%	2.8 pp

Chemical and Allied Products Plc - Q2 and H1 2023 Unaudited Results NGX Ticker: CAP

In million ₦, unless otherwise stated	Jun-23	Dec-22	YoY
Non-current Assets	2,202	2,140	3%
Current Assets	12,894	11,028	17%
Assets Held for Sale	238	238	-
Total Assets	15,334	13,406	14%
Non-current Liabilities	336	337	(0.2%)
Current Liabilities	8,380	6,470	30%
Total Liabilities	8,716	6,807	28%
Equity	6,618	6,600	0.3%
Total Liabilities and Equity	15,334	13,406	14%

For more information, please contact:

Lolade Bashiru Investor [e-mail]

Chemical and Allied Products Plc - Q2 and H1 2023 Unaudited Results

NGX Ticker: CAP

About CAP Plc

Chemical and Allied Products Plc (CAP) is a leading paints and coatings company in Nigeria with globally recognised brands such as Dulux, Sandtex, Caplux and Hempel. CAP manufactures and sells decorative paints and industrial coatings. CAP is the sole technological licensee of Akzo Nobel Coatings International B.V. and is the Nigerian representative of Hempel Paints South Africa (Pty) Limited. CAP pioneered the colour centre concept in Nigeria in 2005, which resulted in the evolution of the Nigerian paint industry. CAP is a public company listed on The Nigerian Exchange ("NGX"). It is a subsidiary of UAC of Nigeria PLC which holds 57.85% of the company's shares. For more information visit https://www.capplc.com/

CAP's Investors Portal

CAP has a dedicated investors' portal on its corporate website which can be accessed via this link: https://www.capplc.com/investor-relations/. This Earnings Press Release should be read in conjunction with the Unaudited Financial Statements for the period ended 30 June, 2023 available on our website. For any investment related enquiry, please contact Lolade Bashiru, Investor Relations by electronic mail at [e-mail].

Disclaimer

This announcement contains or will contain forward-looking statements which reflect management's expectations regarding the Company's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "anticipate", "believe", "expects", "intend" "estimate", "project", "target", "risks", "goals" and similar terms and phrases have been used to identify the forward- looking statements. These statements reflect management's current beliefs and are based on information currently available to management. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking statements. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally. Chemical and Allied Products Plc cautions readers that several factors could cause actual results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully, and undue reliance should not be placed on the forward-looking statements. For additional information with respect to certain of these risks or factors, reference should be made to the Company's disclosure materials filed from time to time with Securities and Exchange Commission of Nigeria. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise.