Chellarams posts N1.45bn pre-tax profit in Q1 2026 as revenue jumps 84%
By Aboki Forex —
Chellarams Plc returned to profitability in the first quarter of 2026, posting a profit before tax of N1.45 billion, against a N38.52 million loss in the same period of 2025. Revenue rose 83.64% year-on-year to N9.66 billion, according to its unaudited financial statements filed with the Nigerian Exchange (NGX) on Thursday, July 30.
Revenue and profit recovery
The diversified consumer goods company generated revenue of N9.66 billion, up from N5.26 billion in Q1 2025. Profit after tax stood at N1.23 billion, reversing a N45.24 million loss a year earlier. Profit attributable to shareholders recovered to N1.10 billion, from a N35.82 million loss in Q1 2025.
Cost of sales rose 58.61% to N7.55 billion, much slower than revenue growth. Gross profit surged 321.31% to N2.11 billion from N501.60 million, with gross margin expanding to roughly 21.9% from 9.5%.
Distribution expenses increased 84.83% to N137.80 million, while administrative expenses rose 26.58% to N464.44 million. Finance cost fell 4.67% to N260.77 million, supporting earnings. Other income loss widened to N202.17 million from N174.91 million.
Balance sheet position
Total assets stood at N22.16 billion, down from N23.12 billion at March 2026. Non-current assets were N15.36 billion, including N11.23 billion in investment property and N3.84 billion in property, plant and equipment. Current assets totalled N6.81 billion, with trade receivables of N3.41 billion, inventories of N2.60 billion and cash of N235.16 million.
Total equity improved to N3.81 billion from N2.58 billion. Retained earnings deficit narrowed to N8.21 billion from N9.31 billion. Current liabilities remained high at N14.70 billion, including N11.47 billion in trade and other payables, N1.90 billion in bank import finance and N665.41 million in current tax liabilities. Non-current liabilities were N3.66 billion, made up of N1.84 billion in long-term loans, N1.31 billion in subordinated debt and N507.21 million in deferred tax liabilities.
Stock suspension history and outlook
NGX suspended trading in Chellarams shares on September 30, 2021, after the company failed to file its audited financial statements for the year ended March 31, 2021. The suspension was lifted on November 12, 2021, after Chellarams submitted the outstanding statements.
The stock trades around N13.20 and has been flat since December 15, 2025. The new Q1 2026 filing could move the price in the coming weeks. Investors are likely to watch the negative working capital position, with current liabilities exceeding current assets by N7.89 billion, and the sizeable accumulated losses that still need to be worked through.