Chellarams posts N1.45bn Q1 2026 profit, reversing prior year loss
Chellarams Plc returned to profit in the first quarter of 2026, posting a profit before tax of N1.45 billion compared with a loss of N38.52 million in Q1 2025. Revenue jumped 83.6 % year‑on‑year to N9.66 billion, while gross profit surged 321 % to N2.11 billion, lifting the gross margin from 9.5 % to about 21.9 %. Profit after tax rose to N1.23 billion from a N45.24 million loss, and profit attributable to shareholders reached N1.10 billion versus a N35.82 million loss a year earlier. Finance costs fell 4.7 % to N260.77 million, but distribution and administrative expenses rose with higher sales volumes. The balance sheet shows total assets of N22.16 billion and equity of N3.81 billion, yet current liabilities of N14.70 billion exceed current assets of N6.81 billion, leaving a negative working capital of N7.89 billion and a cash balance of only N235.16 million. The NGX lifted its share‑trading suspension in November 2021, and the stock has traded around N13.20 since December 2025.
With the company back in profit but still carrying a sizable working‑capital shortfall, will the Q1 earnings lift the share price above its stagnant N13.20 level, or will concerns over liquidity keep investors cautious?