Chemical and Allied Products (CAP), Meyer and Berger Paints reported a revenue growth of 45.7% in H1 2022, as house owners and industrial companies spent over N12.43 billion to purchase their products – but their growth is affecting small paint producers in Nigeria.
The best performing companies in Nigeria’s paint market for H1 2022 are ranked based on their net profit growth by Prime Business Africa, and are as followed;
Chemical and Allied Products (77.5% Net Profit)
CAP maintained its leadership in the paint market with a revenue growth of 52.6%, after Nigerians spent over N8.74 billion to purchase their products in H1 2022, surpassing the N5.72 billion the firm generated in first half last year.
Berger Paints (49.1 Net Profit)
While Berger Paints recorded the lowest revenue growth amid the three listed companies, it was the second best performing firm in the first half of this year based on net profit growth.
Meyer (-118.1% Net Profit)
Meyer reported that its revenue grew 41.5% year-on-year to N686.96 million in the first half of 2022, surpassing the N485,461,000 generated in the same period last year.
According to the founder of Biolux, Abisola Odebode, the presence of the big three are affecting demands of small producers, as paint consumers will rather buy brand names, while he has to depend on referral to expand his market exposure.
“Presence of CAP, Meyer and Berger paints affected the business in different ways, firstly the aforementioned names are big player when if comes to paint industry in the country and that made many people believe in patronizing them than buying locally produced paints products.”
Although he said their presence also inspires them to produce quality product to better compet with the bigger brands, “it helps those that want to be relevant in the industry push good products into the market since you know that your competitors are big names.
Odebode added, “As a paint producer you need to keep improving on your products, because the more people buy and know that your products is good they will keep patronizing you and even recommend and refer your products.”
The producer suggested that the government make loan more accessible to small business owners to ease their operation, especially for people with disability, “Provision of more accessible loan will really help alot, alongside means of ease of doing business.
“Business financial inclusive assistance should be given priority to persons with disability that are into business.” He told Prime Business Africa.
Meanwhile, he explained that the hike in cost of production is felt across the market, and has drastically increased, “Seriously, that’s the major challenges that we are facing on a daily basis because price of chemicals keep increasing and this has direct impact on cost of production. Compare to last year, it has drastically increased.”
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