Chellarams reports N4.21bn loss in 2020, cuts workforce, closes branches

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By Kayode Tokede

Chellarams Plc, a leading Nigerian conglomerate with interests in manufacturing, retail, distribution, marketing and power generation has released its financial statements for the year ended 31 March 2020 with 129 per cent increase in loss at N4.21 billion from N1.84 billion loss in 2019.

Revenue also shrunk during the year by 53 per cent to N1.97 billion from N4.16 billion in 2019.

The chairman of the group in his statement said the significant reduction in revenue performance was due to varied challenges encountered by the group of companies in the procurements of raw materials and more importantly restriction imposed on dairy products through monetary/fiscal measures introduced during the reporting financial year by Federal Government via Central Bank of Nigeria.

“As a result of our Organization still being in the loss region financially, your board of directors is unable to recommend payment of Dividend,” the chairman said.

The Chief Executive Officer, Mr. Aditya S. Chellarams in his report said the economic trends of 2018/2019 – scarcity of foreign exchange and inflation leading to lower consumer spending power in particular – had continued in the year under review and intensified.

“It continues to be a difficult time for business operations for our company. Current events since March 2020, such as lockdown due to COVID-19 and the destructive turn of events after the peaceful #EndSARS protests make the forecast going forward even more concerning,” the CEO said.

“While there do remain some opportunities for us to grow the bottom line of our trading business, all rewards are subject to risk. We are progressing with caution.

“Major steps were taken at the end of the year under review to reduce our exposure and our expenses including reducing our workforce, closing our branches in Kano and Port Harcourt.”