Chellarams Plc has reported a significant loss of N3 billion for the 2023/2024 financial year, marking a sharp reversal from the N4.9 billion profit it recorded in the previous year. The company attributed this downturn to surging costs and substantial foreign exchange losses.
The firm faced an alarming exchange loss of N2.8 billion, a steep rise from the N121 million recorded the year before. In its financial statement filed with the Nigerian Exchange Limited on Thursday, Chellarams disclosed a 30% growth in revenue, which increased to N13.8 billion, up from N10.6 billion in the previous year.
However, the revenue boost was overshadowed by a 36% rise in the cost of sales, which climbed to N12.8 billion from N9.4 billion. This surge in expenses caused the gross profit to decline by 16%, dropping to N982 million from the N1.17 billion recorded in the previous year.
Operating income saw a dramatic 97% fall, plummeting to N217 million from N6.4 billion, primarily due to a 91% decline in other operating income, which dropped to N612 million from N6.6 billion.
Administrative expenses saw a slight reduction, dipping 6% to N1.21 billion from N1.29 billion, while finance costs fell by 46%, down to N647 million from N1.2 billion in 2023.
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Despite benefiting from a tax write-back of N212 million, following a tax expense of N151 million in the previous year, it was insufficient to offset the losses. The company reported a loss of N2.5 billion attributable to the parent company, compared to a N5 billion profit in 2023. Additionally, non-controlling interest recorded a loss of N495 million, up from the N54 million reported the year before.
