The Chemical and Allied Products Plc saw its finance costs ballooned by 362.97 per cent to N 155.35m in 2023 from N33.55m, driven by interest on borrowings, which rose by 377.27 per cent.
Interest on borrowings went up N153.92m from N32.25m in 2022.
Despite the significant rise in the firm’s finance cost, it improved profit after tax by six per cent to N2.5bn in 2023 compared to N2.4bn in the prior year.
According to the audited report of CAP, revenue increased by 24 per cent to N23.9bn, instead of N14.2bn in 2022, the highest in the last five years of operations for the firm.
The directors of the firm recommend to shareholders a full-year ordinary dividend of N1.55k per 50 kobo share, representing N1.26bn cash distribution, the same as what was distributed in 2022.
Commenting on the results, Managing Director, Bolarin Okunowo, said “Our performance in FY 2023 is a testament to our resilience as a business. Despite facing numerous policy and macroeconomic challenges throughout the year— notably the cash crunch from the naira re-design, the removal of petrol subsidies leading to a rapid escalation in the prices of raw materials, general goods and services, and foreign exchange challenges—we steadfastly maintained our reputation for excellence by providing high-quality products and services that delight our customers.
“Moving forward, we will consolidate efforts to ensure that our company remains resilient against macroeconomic headwinds, while also continuing to earn and exceed our customers’ expectations.”
The Monetary Policy Committee of the Central Bank of Nigeria had in July pegged the benchmark interest rate at 18.75 per cent and it remained at that peg for the rest of the year.
However, the MPC raised the benchmark interest to 22.75 per cent in February before reviewing up to 24.75 per cent on Tuesday.
