Meyer Plc Soars 28% YoY: 1028.5% EPS Growth Despite 18.77% Inflation Rate

Published On: June 21, 2023Company: Meyer Plc (
What improvements has the company made to reduce macroeconomic risks and maximize value for all stakeholders?
Meyer Plc has improved its succession planning process, streamlined business continuity measures, and broaden supply chain choices. As an organization, they are refining their strategies to embrace and adopt technology, establishing more Experience Centers with technologically advanced tinting machines, expanding their distribution network across Nigeria, and improving product marketing and visibility. They are also investing in employee development, providing opportunities for growth, fostering a positive work environment, and establishing effective communication channels.

Review of the Macroeconomic Environment

  • The global economy continued to expand steadily in 2022, even as the international monetary authorities hinted at changes to monetary policy strategies.
  • Russia-Ukraine conflict had negative consequences for the global economy, including disruption of trade flows and higher inflationary pressures.
  • Nigeria witnessed slower economic activities with GDP growth at 3.52%, marginally below the 3.40% 2021 growth.
  • No-oil sector improved by 4.84% due to increased growth in Manufacturing, Trade, Information and Communications, Agriculture, and Financial & Insurance sectors.
  • Manufacturing Purchasing Managers Index (PMI) increased in December 2022 to 54.6 points from 52.0 points in December 2021.
  • Monetary Policy Committee (MPC) increased rates by 6%: Cash Reserve Ratio (CRR) to 32.50%; Liquidity Ratio remained at 30% throughout the year.
  • Average inflation rate for 2022 was 18.77% up from 16.98%.
  • Nigerian equities market ended 2022 on a bullish note with local investors accounting for 86.2% and foreign investors accounting for 13.8% of total transactions.
  • Primary Market Auction stop rates on government treasury bills increased.
  • Naira depreciated to NGN880/USD by November 2022 and Foreign Reserves decreased by 8.48% to close at $37.08 billion.

Performance Review for 2022

  • Despite challenging operational and business environment, focus on maximizing stakeholder value never wavered.
  • Meyer Plc ranked the third best performing stock on the Nigerian Exchange Group (NGX) in 2022.
  • Company recorded 28% Year-on-Year (YoY) growth in revenue from N1.11 billion in 2021 to N1.43 billion.
  • Gross Profit increased by 7%.
  • PBT decreased by 129%.
  • PAT increased by 1069% and EPS by 1028.5%.
  • Shareholder’s fund increased by 37%.
  • Profits for the year 2022 will be used to establish company as market leader in sector.
  • No dividend will be recommended.

Outlook for 2023

  • Global growth projected to decelerate sharply in 2023- according to the World Bank, global economic output would decline significantly from the 3.20% predicted in 2022 to the 1.70% predicted in 2023.
  • Projected slow economic growth, structurally high inflation, currency weakness, declining real incomes, and insecurity have combined to portray picture of deteriorating macroeconomic state, limiting business climate in 2023.
  • Fiscal authority expected to continue expansionary spending given the ₦21.83 trillion approved for the 2023 budget.
  • World Bank projected 2.90% growth rate for Nigeria in 2023; Federal Government estimated more optimistic 3.75%.
  • Nigerian company refining strategies to embrace and adopt technology into operations- to take advantage of emerging opportunities in paints market.
  • Goals include establishing Experience Centers with technologically advanced tinting machines and improving product marketing and visibility to ensure value for all stakeholders.
  • Company investing in employee development, providing opportunities for growth, fostering positive work environment, and establishing communication channels.

Useful links

About Meyer Plc (

Meyer Plc formerly DN Meyer Plc manufactures and sells high quality paint for the residential, industrial, automotive, marine and construction sectors in Nigeria. Products in its extensive range include decorative paint, wood paint, vehicles finishes, industrial and marine coatings, road lining paint, roof coating and tube coating. The company also produces a range of tile adhesives. DN Meyer Plc has business interests in selling and renting residential apartments and building and restoring properties. Founded in 1940 and formerly known as DN Meyer Plc, the company changed its name to Meyer Plc in 2016. The company’s head office is in Ikeja, Nigeria. Meyer Plc is listed on the Nigerian Stock Exchange

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