Berger Paints’ 9M pre-tax profit rises 14.8% to N1.68 billion, declares dividend

Berger Paints Nigeria Plc reported a profit before tax of N1.68 billion for the nine months ended September 2026, up 14.8% from N1.46 billion in the corresponding period of 2025.

This is contained in the company’s unaudited consolidated and separate financial statements for the third quarter ended September 30, 2026.

Berger Paints declared an interim dividend of 50 kobo per ordinary share for the nine months ended September 30, 2026, amounting to N144.91 million.

The dividend is subject to applicable withholding tax, with a qualification date of November 12, 2026, and payments scheduled for November 20, 2026.

Payments will be made electronically to eligible shareholders who have completed their e-dividend registration.

Key Highlights

Revenue: N10.01 billion (Up 7.4% YoY from N9.32 billion).
Gross profit: N5.22 billion (Up 26.6% YoY from N4.12 billion).
Operating profit: N1.52 billion (Up 5.3% YoY from N1.44 billion).
Profit before tax: N1.68 billion (Up 14.8% YoY from N1.46 billion).
Profit after tax: N1.09 billion (Up 12.4% YoY from N968.01 million).
Earnings per share: 375 kobo (Up 12.3% YoY from 334 kobo).

Driving the numbers

Berger Paints recorded moderate revenue growth in the nine months ended September 2026, with turnover rising by 7.4% to N10.01 billion from N9.32 billion in the corresponding period of 2025.

However, the stronger performance came from gross profit, which increased by 26.6% to N5.22 billion from N4.12 billion, supported by lower production costs.

Cost of sales declined by 7.8% to N4.79 billion from N5.19 billion, despite higher revenue. Consequently, gross profit margin improved to 52.1% from 44.2%, indicating that the company retained a larger share of its revenue after accounting for direct production costs.
The improvement in gross profitability was partly offset by rising operating expenses, particularly administrative costs, which increased by 60.5% to N3.46 billion from N2.16 billion.
Selling and distribution expenses, however, declined by 43.0% to N330.04 million from N579.41 million, providing some relief to operating costs.
Despite the stronger gross profit, operating profit increased by just 5.3% to N1.52 billion from N1.44 billion, reflecting the impact of higher administrative expenses on overall profitability.
Finance income provided additional support, rising to N223.30 million from N59.30 million, while finance costs increased to N59.91 million from N35.90 million.

This resulted in net finance income of N163.39 million, compared with N23.40 million in the corresponding period of 2025, contributing to the 14.8% increase in pre-tax profit to N1.68 billion.

Meanwhile, income tax expense rose by 19.5% to N593.41 million from N496.44 million, limiting profit after tax growth to 12.4%, with net profit reaching N1.09 billion from N968.01 million.

Balance sheet

On the balance sheet, total assets increased by 6.3% to N9.64 billion as of September 30, 2026, from N9.07 billion at the end of 2025.

The increase was supported by other financial assets, which rose to N2.65 billion from N1.98 billion, while cash and cash equivalents increased by 7.6% to N384.72 million from N357.63 million.
Inventories declined to N2.64 billion from N2.75 billion, while trade and other receivables increased to N647.88 million from N468.99 million.
Total loans and borrowings declined to N110.54 million from N219.99 million at the end of 2025, with the September 2026 balance classified entirely as current liabilities.
The company also reported financial derivative liabilities of N144.44 million, down from N238.19 million at the end of 2025, comprising N109.87 million in non-current liabilities and N34.57 million in current liabilities.

Overall, Berger Paints’ nine-month performance reflected improved gross margins and stronger finance income, although rising administrative expenses and higher tax payments constrained operating profit growth and cash generation.