Chellarams Nigeria Plc released its 9 months to 31st December 2012 with turnover of N17.4billion dropping 9.33% from the N19.19billion. Gross Profit for the period under review was N2.69billion (2011: N2.52billion) as cost of sale sliced 86% of Revenue. Pre-Tax profits at the end of the period was N173.8million (2011: 271.3million) representing a meagre 1% profit margins and a 36% drop over the prior year. The company had a cash balance of N203million at the end of the period and had overdrafts of about N2.1billion. External loans was about N2.77billion only.
Chellarams is an importer of Consumer Good items such as FMCG’s as well as industrial goods in Nigeria. Their share price was N5.43kobo, down from its year high of N6.43kobo.
then they should cut down the expenses (cost)
Good point. They also need to increase their revenue it has dropped for the second straight quarter.