CHELLARAMS PLC's NO CHEERS FOR 2018.

But for non operational profit made from sale of some assets, no cheers would have been heard at the next annual general meeting of Nigeria's Chellarams Plc. Simply put, it was an agonising financial year.
In the first place, total income dropped by 23.1% to N9.608bn despite multiple growth in Other income to N875.94m because core revenue declined by 29.6% to N8.732bn from year 2017'ss N12.497bn.
Then because cost of sale dropped by a lower 23.5% to N6.917bn , gross profit tumbled by 45.9% to N1.815bn.
Beyond here too,  good news delivered by Other income jump to N875.94m from N96.84m and low 7.6% growth in selling expense to N84.16m, operating profit dropped into loss league as administration cost rose to N4.384bn from N1.754bn.
Chellarams operating profit in 2017 was N1.617 bn but come 2017, the talk was about operating loss of N1.777bn.
Thus, even though finance charges declined to N599.55m from N950.41m, loss before tax would have been inevitable but for the N2.665bn profit from asset sale recognised in the accounts as part of the year's gain.
In the end, Chellarams reported N269.9m profit before tax for the year compared to N567.74m in 2017.
But that is not to say that 2018 will be easily forgotten. It may not be, because 2019 is now burdened by tighter liquidity position as 2017s surplus N840.92m working capital declined into N218.2m deficit by March 2018.

CHELLARAMS PLC Nm Full year
                                2017.              2016
Total income.     9608.93.        12497.24
Core revenue.     8732.99.        12400.40
Cost of sale.       6917.92.          9046.48
Gross profit.        1815.07.          3353.93
Other income.       875.94.               96.84
Selling etc.               84.16.               78.32
Administration.   4384.10.           1754.9
Operating profit  (1777.25).         1617.54
Finance charges    599.55.             950.41
Asset disposal gain 2665.62.          ---
Profit before tax.       269.9.            567.74
Working capital.     (218.2).             840.92

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