Meyer Plc, a leading Nigerian paint and coatings manufacturing company listed on the Nigerian Exchange (NGX), has reported a significant 61% increase in pre-tax profit for the 2025 financial year.
The unaudited results for the year ended December 31, 2025, show a pre-tax profit of N737 million, a substantial rise from the N457.6 million recorded in the previous year.
The company’s revenue grew by 36% to N4.232 billion, driven by increased demand for its products. This revenue figure represents almost half of the company’s total earnings over the past five years. Profit after tax saw an even stronger performance, surging 86% to N550 million for the year.
Okay News reports that the robust financial performance was underpinned by effective cost management. Gross profit increased by 45.4% to N1.51 billion, yielding a healthy gross profit margin of 36%. The company also significantly strengthened its balance sheet, reducing its total debt by 68.4% to N1.82 billion from N5.78 billion in 2024.
Strong Earnings And Investor Sentiment
A key metric for shareholders, Earnings per Share (EPS), grew by 88% to N1.11, marking the highest level since 2021. The company’s total assets expanded by 21.2% to N3.44 billion, while shareholder equity increased by 21.9% to N2.23 billion. Liquidity was notably strong, with cash and cash equivalents rising to N2.05 billion.
The company’s stock price closed at N19, reflecting a 46.7% increase over the past year. This performance has pushed Meyer Plc’s market capitalization to N10.1 billion, which is significantly higher than its net asset value of N2.23 billion. This disparity suggests that investors are pricing in strong future growth expectations, though it also raises questions about potential overvaluation.
Operating Cost Pressure Remains A Focus
Despite the strong top and bottom-line growth, the financial statements indicate pressure from operating expenses. The operating profit margin stood at 9%, with operating profit at N392 million. This suggests that overhead costs moderated the conversion of gross profit into operating earnings.
The bottom-line performance was notably boosted by a substantial finance income of N345 million, up from N251 million in 2024, while finance costs remained minimal at N0.2 million. Investors are now watching to see if the company can surpass the N1 billion pre-tax profit milestone it last achieved in 2020, with expectations that EPS could return to the N2.25 level seen that year during the 2026 financial period.
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