Berger Paints Nigeria Grows Profit to ₦456.6 Million Despite Rising Administrative Costs
Berger Paints Nigeria Plc reported a profit after tax of ₦456.6 million for the three months ended March 31, 2026, representing a 47.5 percent increase from ₦309.5 million recorded in the corresponding period of 2025.
Revenue rose to ₦3.39 billion from ₦2.97 billion, representing a 13.9 percent year-on-year growth driven by improved sales performance across its product lines.
Cost of sales increased to ₦1.80 billion from ₦1.68 billion, but at a slower pace than revenue growth, supporting an expansion in gross profit to ₦1.59 billion from ₦1.29 billion. This translated to improved gross margin during the period.
Operating performance strengthened as operating profit rose to ₦663.2 million from ₦463.5 million, representing a 43.1 percent increase.
The improvement was supported by a sharp decline in selling and distribution expenses, which dropped to ₦75.7 million from ₦160.8 million.
However, administrative expenses surged to ₦872.0 million from ₦680.3 million, indicating rising overhead costs that could pressure margins if sustained.
Finance income increased significantly to ₦52.3 million from ₦17.1 million, while finance costs rose to ₦22.4 million from ₦10.9 million. Net finance income improved to ₦29.9 million, contributing positively to overall profitability.
Profit before tax stood at ₦693.1 million, up from ₦469.7 million, while income tax expense increased to ₦236.5 million from ₦160.3 million.
Earnings per share rose to 158 kobo from 107 kobo, reflecting stronger shareholder returns.
On the balance sheet, total assets increased to ₦10.04 billion as at March 31, 2026 from ₦9.07 billion at the end of 2025.
The growth was largely driven by a sharp rise in cash and cash equivalents to ₦849.6 million from ₦357.6 million and an increase in other financial assets.
Total equity rose to ₦5.44 billion from ₦4.99 billion, supported by retained earnings growth. Total liabilities increased to ₦4.60 billion from ₦4.07 billion, reflecting higher tax liabilities and trade payables.
A closer assessment of the financials shows that while revenue and profit growth remain solid, the spike in administrative expenses highlights a potential efficiency challenge.
Additionally, the increase in tax liabilities suggests higher earnings exposure to regulatory obligations.
The company’s improved liquidity position provides short-term stability, but sustained cost discipline will be critical to maintaining profitability momentum in a rising cost environment.
