Chellarams Plc returned to profit in the first quarter of 2026, reporting a pre-tax profit of N1.45 billion after a N38.52 million loss in the same period last year. The turnaround came from an 83.64% jump in revenue, which reached N9.66 billion, and improved margins.
Revenue surge outpaces cost growth
The company’s unaudited financial statements for Q1 2026, filed with the Nigerian Exchange on July 30, showed revenue rising from N5.26 billion in Q1 2025. Cost of sales climbed at a slower pace—up 58.61% to N7.55 billion—letting gross profit more than quadruple to N2.11 billion from N501.6 million.
Margins widened to 21.9%, up from 9.5% a year earlier. This reflected stronger pricing and tighter cost control. Distribution expenses rose 84.83% to N137.8 million, matching higher sales volumes, while administrative expenses grew 26.58% to N464.44 million.
Finance costs dropped 4.67% to N260.77 million, helping earnings despite increased business activity. Chellarams also posted an other income loss of N202.17 million, slightly worse than the N174.91 million loss in Q1 2025.
Profitability rebounds, but balance sheet pressures remain
Profit after tax reached N1.23 billion, reversing a N45.24 million loss from the previous year. Shareholders saw attributable profit recover to N1.10 billion, compared with a N35.82 million loss in Q1 2025.
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Total assets fell to N22.16 billion from N23.12 billion at the end of March 2026. The decline came from lower inventories and trade receivables. Non-current assets amounted to N15.36 billion, supported primarily by N11.23 billion in non-current assets. Total equity rose to N3.81 billion from N2.58 billion.
Non-current liabilities totaled N3.66 billion. These included N1.84 billion in long-term loans and N1.31 billion in subordinated debt. Managing these obligations while growing will be key.
The company’s performance reflects broader trends in market activity last week, where gains were also reported.
The recovery follows a difficult period for the firm. Its shares were suspended on the NGX in 2021 for failing to file audited financial statements. Trading resumed in November 2021 after submitting the overdue reports. The stock has held at N13.20 since December 2025, and the latest filing may affect its price soon.
Though the quarter’s results show a strong rebound, long-term stability depends on maintaining profitability and easing financial pressures. The gap between operational success and lingering constraints highlights how turnarounds often need more than one quarter.