Berger Paints Nigeria has announced a 25% increase in its final dividend for 2025, reflecting a year of exceptional financial performance. The company's post-tax profit surged by 147.7% to N1.6 billion, up from the previous year, despite only modest growth in turnover. Earlier in the year, Berger distributed N0.40 per share as an interim dividend, doubling its 2024 payout. The final dividend is set at N1.25 per share, bringing the total payout for the year to N478.2 million when combined with interim payments. Audited results published on Tuesday revealed a 20.6% rise in total assets, reaching N9.1 billion from N7.5 billion. Revenue for the company climbed by one-fifth to N13 billion, driven by sales of paints and allied products, while finance income more than quadrupled due to higher interest earnings on bank deposits. The broader Nigerian paint sector saw a 23.3% jump in sales among listed firms, with Premier Paints recovering from a 2024 loss.
Berger Paints' N1.6 billion profit jump exposes a troubling imbalance: revenue barely budged while finance income ballooned, suggesting heavy reliance on non-core earnings. The 25% dividend hike rewards shareholders but does little for Nigeria's struggling real estate sector, where growth forecasts remain sluggish despite urbanisation. With total payouts at N478.2 million, the company's generosity feels like a consolation prize for a market still waiting for real demand. Unless Berger's core operations catch up, this dividend surge will look less like success and more like a financial mirage.
