In 2020FY, Berger Paints Plc. (BERGER) sustained its growth momentum despite the challenges faced during the year. The company was able to manage the situation through a combination of initiatives. According to management, key production raw materials and components previously sourced from China and other high risk (COVID-19 risk) countries were sourced from alternative suppliers during the year. Other initiatives include the deliberate improvement in production and outbound logistics processes. Thus, the paint maker only suffered minimal impact on its operations in the second half of the year and was able to realize a total revenue of NGN3.87bn at the end of the year – an improvement of 7.05% YoY. By segment, sales of paints remain a key contributor to topline, accounting for 94.61% of total revenue for the year (NGN3.60bn) while contract services and lease of Investment property made up for the rest (NGN206.79mn). For 2021FY, we expect the company’s operations to remain stable as the environment becomes more conducive for economic activities (due to progress in combating COVID-19). Also, we note the company’s drive to capture market share through its aggressive marketing and discounting initiatives as a key tailwind. We thus project a revenue of NGN4.18bn for 2021FY – an increase of 8.89% YoY
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