By Chinwendu Obienyi
In a bid to add value to its shareholders, the Board and Management of Chemical and Allied Products (CAP) Plc, says it will continue to pursue attractive growth opportunities.
This is coming on the back of the release of its Unaudited Financial Results for the period ended 31 March 2021 in which the company’s revenue fell by 9.5 per cent from N2.3 billion recorded in the first quarter (Q1) of 2020 to N2.1 billion in the corresponding period of 2021.
The company’s profit before tax (PBT) dropped to N299 million from N672 million while profit after tax (PAºT) fell by 55.5 per cent from N457 million recorded in Q1 2020 to N203 million.
Speaking on the Company’s Q1 2021 financial results, the Managing Director, CAP Plc, David Wright, said the COVID-19 pandemic had a negative impact on CAP’s business as there were increased global demand for chemicals driven by the economic rebound in Asia and feedstock challenges, with several suppliers declaring Force Majeures, which resulted in a global shortage of raw materials.
“This significantly impacted product availability in the first quarter of the year. In addition, there was a scarcity premium placed on all available raw materials which eroded gross margin across various product lines.
We have taken steps to secure alternative raw material sources and are increasing inventory levels to mitigate against further disruptions. As such, we expect a strong recovery in the remaining quarters of the year.