Nigerian paint maker CAP Plc recorded a 20 percent year-on-year increase in operating profit in the first half of 2026, rising to N3.81 billion from N3.17 billion in H1 2025. The gain came as administrative expenses grew just one percent over the same period, slightly widening the gap between what the company earned and what it spent to run the business.
At the top of the income statement, revenue grew 11.9 percent year-on-year, from N20.09 billion in H1 2025 to N22.41 billion in H1 2026. Gross profit grew at a similar pace, up 11.1 percent to N9.68 billion, suggesting the improvement in operating profit came from cost control further down the income statement rather than from stronger margins on the paints business itself.
Below the operating line, profit before tax rose 17.9 percent to N4.45 billion from N3.78 billion in H1 2025. Finance income helped drive this gain, growing 28 percent to N770.1 million on higher interest earned on short-term deposits. A rise in finance costs during the period partly offset this, but the increase in finance income was large enough to keep pre-tax profit growth firmly positive. Profit after tax increased 16.1 percent, from N2.52 billion in H1 2025 to N2.94 billion in H1 2026.
On the balance sheet, CAP Plc’s total assets fell 4 percent between H1 2025 and H1 2026, driven mainly by a decline in cash and cash equivalents. Total liabilities fell 6 percent over the same period, reflecting lower trade payables and a reduction in current income tax liabilities.
Total equity fell from N14.25 billion in H1 2025 to N13.93 billion as at 30 June 2026, as a large dividend payout outpaced retained profit for the half — pulling retained earnings down from N12.35 billion to N12.03 billion even as the company posted a profit for the period.
The cash flow statement points to a tighter half than the income statement alone suggests. Net cash generated from operating activities fell to N980.1 million, down sharply from N2.43 billion in H1 2025, as cash was absorbed into higher trade receivables, larger prepayments, and an inventory build-up. Cash and cash equivalents fell from N11.74 billion in H1 2025 to N9.54 billion in H1 2026, an 18.7 percent decline, driven largely by a N3.26 billion dividend payment during the half, 67 percent larger than the N1.96 billion paid in the same period last year, and larger than the company’s entire six-month profit.
CAP Plc has rewarded its shareholders with a year-to-date gain in price of 106.5 percent, currently holding a share price of N142.45 and a market capitalisation of N116.06 billion.
