Paints and coatings company rewards shareholders with 67% dividend increase
Chemical and Allied Products Plc (CAP Plc) has rewarded shareholders with a final dividend of N4.00 per 50 kobo ordinary share for the financial year ended December 31, 2025, following a year of improved financial performance and strategic growth.
The dividend, which represents a 67 per cent increase compared with the previous year, translates to a total payout of N3.26bn. It was approved by shareholders at the company’s 61st Annual General Meeting held in Lagos, alongside other resolutions presented by the Board.
The approval reflects CAP Plc’s continued focus on delivering sustainable value to investors while strengthening its operations amid a challenging business environment.
The company’s improved dividend payment followed a strong financial performance in 2025, driven by operational efficiency, cost management, improved margins, and expansion of its product portfolio.
CAP Plc recorded revenue of N44.9bn during the year, representing a 23 per cent increase from the N36.4bn achieved in 2024. Gross profit also increased by 32 per cent to N19.4bn, while profit before tax rose by 51 per cent to N9.1bn from N6.1bn recorded in the previous year.
Speaking at the AGM, Chairman of the Board of CAP Plc, Fola Aiyesimoju, said the company’s performance demonstrated the strength of its strategic approach and its ability to create consistent value for stakeholders.
He acknowledged that the operating environment remained challenging for manufacturers but noted that the company’s emphasis on efficiency, cost discipline, and customer confidence helped drive improved results.
“Nigeria’s operating environment, while showing meaningful signs of stabilisation, remained demanding for manufacturers in 2025.
“CAP PLC’s continued emphasis on operational efficiency and cost optimisation drove improved profitability, with operating margins expanding to 18 per cent, from 15 per cent. These results reflect disciplined execution and the trust customers place in the quality of our product portfolio,” he said.
The chairman added that the company remained committed to strengthening its market position through innovation, operational excellence, and continued investment in growth opportunities.
Expanding Reach Through Retail Growth
The outgoing Managing Director of CAP Plc, Bolarin Okunowo, said the company’s performance was achieved through deliberate efforts to strengthen operations, improve customer engagement, and expand market access.
She explained that CAP Plc remained focused on building resilience against economic pressures while ensuring customers continued to have access to quality products.
“In our resolve to deliver exceptional results, we deepened our strategic focus, strengthened our operations, and remained customer-focused. Our retail network grew to 152 stores, up from 135 in 2024, and we expanded our product offering to better serve our customers. Our results underscore our ability to navigate complexity, sustain growth, and position the business to capture emerging opportunities in an evolving economic landscape,” Okunowo said.
According to her, the company’s continued investment in its distribution network and product range had helped position CAP Plc to respond effectively to changing market demands.
Shareholders Commend Leadership
At the meeting, shareholders praised the company’s leadership for maintaining strong performance despite economic uncertainties and for sustaining shareholder value through consistent returns.
They also approved several corporate governance resolutions, including the re-election of Oladele Ajayi to the Board. Udo Okonjo and Adebolanle Badejo were also re-elected after retiring by rotation.
Shareholders expressed appreciation to Okunowo for her contribution to the growth of the company during her four-and-a-half-year tenure as Managing Director, commending her leadership and commitment.
They also welcomed Lekan Aluko as the incoming Managing Director, expressing confidence in his ability to continue advancing CAP Plc’s long-term growth objectives.
With renewed focus on expansion and innovation, CAP Plc said it would continue investing in its people, technology, and operational capabilities to strengthen its market position and create lasting value for shareholders, customers, employees, and the wider economy.
CAP Plc, a subsidiary of UAC of Nigeria Plc, is Nigeria’s leading manufacturer and distributor of paints and coatings, with more than six decades of industry experience. The company produces and distributes decorative, industrial, and protective coatings designed to meet the needs of residential, commercial, and industrial customers.