CHELLARAMS BLAMES N3BN LOSS ON FOREX CRISIS
Summary:
- Financial Results: Chellarams Plc reported a significant loss of N3 billion for the financial year ending March 2024, compared to a profit of N4.9 billion the previous year.
- Main Factors for Loss:
- Foreign Exchange Losses: The company faced substantial foreign exchange losses amounting to N2.8 billion, a sharp increase from N121 million the previous year.
- Cost of Sales: The cost of sales surged by 36% to N12.8 billion from N9.4 billion, impacting the gross profit, which fell by 16% to N982 million.
- Revenue and Operating Income:
- Revenue Growth: Revenue grew by 30% to N13.8 billion from N10.6 billion.
- Operating Income Decline: Operating income dropped by 97% to N217 million, down from N6.4 billion in 2023. This was due to a 91% decrease in other operating income.
- Expenses:
- Administrative Expenses: Slightly decreased by 6% to N1.21 billion from N1.29 billion.
- Finance Costs: Reduced by 46% to N647 million from N1.2 billion in 2023.
- Tax and Profitability:
- Tax Write-Back: The company received a tax write-back of N212 million in 2024, compared to a tax expense of N151 million in 2023. Despite this, it was insufficient to counterbalance the losses.
- Losses Attributable to Parent Company: N2.5 billion, compared to a profit of N5 billion in 2023.
- Non-Controlling Interest Loss: Increased to N495 million from N54 million the previous year.
Summary:
- Financial Results: Chellarams Plc reported a significant loss of N3 billion for the financial year ending March 2024, compared to a profit of N4.9 billion the previous year.
- Main Factors for Loss:
- Foreign Exchange Losses: The company faced substantial foreign exchange losses amounting to N2.8 billion, a sharp increase from N121 million the previous year.
- Cost of Sales: The cost of sales surged by 36% to N12.8 billion from N9.4 billion, impacting the gross profit, which fell by 16% to N982 million.
- Revenue and Operating Income:
- Revenue Growth: Revenue grew by 30% to N13.8 billion from N10.6 billion.
- Operating Income Decline: Operating income dropped by 97% to N217 million, down from N6.4 billion in 2023. This was due to a 91% decrease in other operating income.
- Expenses:
- Administrative Expenses: Slightly decreased by 6% to N1.21 billion from N1.29 billion.
- Finance Costs: Reduced by 46% to N647 million from N1.2 billion in 2023.
- Tax and Profitability:
- Tax Write-Back: The company received a tax write-back of N212 million in 2024, compared to a tax expense of N151 million in 2023. Despite this, it was insufficient to counterbalance the losses.
- Losses Attributable to Parent Company: N2.5 billion, compared to a profit of N5 billion in 2023.
- Non-Controlling Interest Loss: Increased to N495 million from N54 million the previous year.