The company also announced an interim dividend of 50 kobo per ordinary share, amounting to a total payout of N144.91 million to eligible shareholders.
The figures are contained in Berger Paints’ unaudited consolidated and separate financial statements for the third quarter ended September 30, 2026.
Shareholders who qualify for the dividend will be determined as of November 12, 2026, while payment is scheduled for November 20, 2026. The dividend will be subject to the applicable withholding tax and paid electronically to shareholders who have completed their e-dividend registration.
The latest results show that the company maintained growth across its major financial indicators, although rising administrative expenses limited the improvement in operating profit.
Revenue increased by 7.4 per cent to N10.01 billion, compared with N9.32 billion in the corresponding period of 2025. Gross profit rose more sharply by 26.6 per cent, from N4.12 billion to N5.22 billion, while operating profit grew by 5.3 per cent to N1.52 billion from N1.44 billion.
Profit after tax also improved by 12.4 per cent to N1.09 billion, up from N968.01 million. Earnings per share increased to 375 kobo from 334 kobo, representing a 12.3 per cent rise.
Lower production costs lift gross profit
One of the strongest features of Berger Paints’ performance was the improvement in its gross profit margin.
Although revenue grew moderately, the company reduced its cost of sales by 7.8 per cent to N4.79 billion from N5.19 billion a year earlier. This helped push the gross profit margin to 52.1 per cent, compared with 44.2 per cent in the corresponding period of 2025.
The improvement suggests that the company retained a larger share of its revenue after meeting direct production costs.
However, the gains at the gross profit level were partly offset by a significant rise in administrative expenses. These costs climbed by 60.5 per cent to N3.46 billion from N2.16 billion, putting pressure on the company’s operating performance.
Selling and distribution expenses moved in the opposite direction, falling by 43 per cent to N330.04 million from N579.41 million. Despite this reduction, the increase in administrative spending limited operating profit growth to 5.3 per cent.
Finance income offered further support to the company’s earnings, rising substantially to N223.30 million from N59.30 million. Finance costs also increased, reaching N59.91 million compared with N35.90 million in the same period last year.
After accounting for both items, Berger Paints recorded net finance income of N163.39 million, significantly higher than the N23.40 million reported a year earlier. This contributed to the 14.8 per cent increase in profit before tax to N1.68 billion.
The company’s tax bill, however, rose by 19.5 per cent to N593.41 million from N496.44 million. The higher tax expense reduced the extent of the improvement in its bottom line, leaving profit after tax at N1.09 billion, up 12.4 per cent from N968.01 million.
Assets expand as borrowings decline
Berger Paints’ total assets stood at N9.64 billion as of September 30, 2026, representing a 6.3 per cent increase from N9.07 billion recorded at the end of 2025.
Other financial assets contributed to the growth, rising to N2.65 billion from N1.98 billion. Cash and cash equivalents also increased by 7.6 per cent to N384.72 million from N357.63 million.
The company’s inventory position declined slightly to N2.64 billion from N2.75 billion, while trade and other receivables rose to N647.88 million from N468.99 million.
There was also a reduction in the company’s loans and borrowings. Total borrowings fell to N110.54 million as of September 2026, compared with N219.99 million at the end of 2025. The remaining balance was classified entirely as current liabilities.
Financial derivative liabilities also decreased, dropping to N144.44 million from N238.19 million at the end of the previous year. The September balance comprised N109.87 million in non-current liabilities and N34.57 million in current liabilities.
Overall, Berger Paints’ nine-month results point to stronger gross profitability and improved earnings from finance income. However, the sharp rise in administrative expenses and higher tax payments continued to weigh on the company’s overall performance.
Shares maintain strong year-to-date gains
Investors also recorded a substantial gain in Berger Paints’ share price during the period.
The company’s shares closed at N147.60 on September 30, 2026, representing a year-to-date increase of 207.5 per cent from the opening price of N48.
