Nigerian paint companies are bleeding cash due to rise in cost of production, as inflation ate into their net profit between January to September 2022.
According to Prime Business Africa (PBA) analysis of three major paint manufacturers, CAP Plc, Berger Paints and Meyer Plc, the industry spent over N7.79 billion between Q1 and Q3 2022 to make their products available.
This is more than the combined N3.40 billion earned in profit after tax during the period in review. Also, their operational expense is closing in on the market’s turnover, as the former rose by 26.94 per cent, and the latter grew 38.90 per cent.
In Nigeria, costs of living and doing business have skyrocketed due to failure of the Central Bank of Nigeria (CBN) to tame inflation that hit 15.60 per cent in January 2022, but soared to 20.77 per cent in the month of September.
Prime Business Africa reports that the paint companies operating in Nigeria will continue to struggle with cost in the fourth quarter and going into 2023, as the last inflation report released by the National Bureau of Statistics (NBS) on Thursday showed the rate is 21.47 per cent in November, surpassing the 21.09 per cent reported in October 2022.
CAP Plc
Berger Paints
Meyer Plc
The Nigeria Employers’ Consultative Association (NECA), has called on the Federal Government to urgently intervene… Read More
Team Nigeria on Sunday evening qualified for the relay event of the 2024 Olympics Games… Read More
The Tomato Crates Dealers Association of Nigeria has issued a stern warning that the supply… Read More
Air Peace has bagged the Institute of Chartered Accountants of Nigeria (ICAN), Achievement Award for… Read More
Petroleum marketers are calling for an extension of the emergency fuel supply initiative as fuel… Read More
Nigeria’s currency in circulation has surged to N3.87tn as of March's end, indicating a preference… Read More
This website uses cookies.