Chellarams blames N3bn loss on forex crisis

Chellarams Plc reported an N3bn loss for the 2023/2024 financial year, which ended March 2024, a reversal from its N4.9bn profit in the previous year.

The company attributed the loss to rising costs and its substantial foreign exchange losses.

It recorded an exchange loss of N2.8bn, compared to N121m the previous year.

In the firm’s financial statement for the 2023/2024 financial year filed with the Nigeria Exchange Limited on Thursday, revenue grew 30 per cent to N13.8bn from N10.6bn in the previous year.

On the other hand, the company’s operating income declined by 97 per cent, from N6.4bn in 2023 to N217m, due to a drop in other operating income, which fell by 91 per cent to N612m from N6.6bn.

However, the revenue growth was overshadowed by a 36 per cent rise in the cost of sales, which went up from N9.4bn to N12.8bn.

The cost surge caused the gross profit to fall by 16 per cent to N982m in 2024 from N1.17bn in the prior year.

Administrative expenses decreased slightly by 6 per cent to N1.21bn from N1.29bn in the previous year.

In the period under review, the finance costs were another key contributor to the loss, declining by 46 per cent to N647m from N1.2bn in 2023.

Despite the company benefiting from a tax write-back of N212m in 2024, following a tax expense of N151m in 2023, it was not enough to offset the losses.

The loss attributable to the parent company was N2.5bn, a shift from the N5bn profit recorded in 2023.

Non-controlling interest also posted a loss of N495m compared to N54m in the previous year.

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

Contact: [email protected]