Paints and coatings manufacturer Meyer Plc has announced a robust financial performance for 2025, reporting a pre-tax profit of N737 million, a 61% increase from the N457.6 million recorded in 2024.
The unaudited results, released for the year ended December 31, 2025, show a significant top-line growth, with revenue surging 36% to N4.23 billion.
This figure represents nearly half of the company’s total revenue over the past five years. Profit after tax grew even faster, rising 86% to N550 million.
The strong revenue growth was primarily fueled by increased demand in the company’s core paints segment. Meyer demonstrated effective cost management, as gross profit jumped 45% to N1.51 billion, yielding a healthy gross margin of 36%.
Operating profit saw an 88% increase to N392 million, though its 9% margin indicates ongoing pressure from operating expenses.
The bottom line was significantly bolstered by a sharp rise in finance income to N345 million, alongside minimal finance costs.
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The company’s financial position improved markedly. Total assets grew 21% to N3.44 billion, with cash and cash equivalents climbing to N2.05 billion.
Notably, total debt plummeted 68.4% to N1.82 billion, reflecting a much stronger equity position and reduced financial leverage. Shareholders’ equity now stands at N2.23 billion.
The market has responded positively to the company’s turnaround, with the stock price gaining 46.7% over the past year. Earnings per share (EPS) reached N1.11, an 88% increase and the highest level since 2021.
However, the company’s market capitalization of N10.1 billion significantly exceeds its net asset value, which analysts suggest could indicate high growth expectations or potential overvaluation.
Investors are now watching to see if Meyer can sustain this momentum and return to the peak profitability levels last seen in 2020.
