Chams Holding Company Plc’s profit after tax fell by 53.5 percent to N500.7 million for the nine months ended September 2025, from N1.08 billion a year ago, as rising finance costs and higher cost of sales offset stable revenue growth.
According to the company’s unaudited financial statements, group revenue rose slightly by 2.5 percent to N13.45 billion, compared to N13.12 billion recorded in the corresponding period of 2024. However, the cost of sales climbed by 8.5 percent to N10.45 billion from N6.42 billion in 2024, reducing gross profit by 14.2 percent to N2.99 billion from N3.49 billion.
Administration expenses also inched up to N1.88 billion from N1.86 billion in the previous year, while other operating income dropped sharply to N22.8 million from N372.2 million, reflecting lower non-core earnings. As a result, operating profit declined to N1.27 billion from N1.65 billion, representing a 23 percent fall year-on-year.
Read also: Chams showcases growth prospects at investor roadshow
Finance costs were a major drag on performance, surging more than threefold to N636.6 million from N178.6 million. In contrast, finance income stood at N18.1 million, compared to N12.5 million in the same period of 2024. This contributed to a 56.6 percent decline in profit before tax, which fell to N654.4 million from N1.51 billion last year.
After accounting for an income tax of N153.7 million, down from N430.9 million last year, profit after tax settled at N500.3 million. Earnings per share weakened to 9.17 kobo from 19.10 kobo in the same period of 2024.
Despite the earnings slump, the company maintained a steady balance sheet. Total assets increased marginally to N20.06 billion as of September 2025, from N20.09 billion at the end of 2024. Non-current assets stood at N11.73 billion, slightly down from N11.80 billion, while current assets rose to N8.93 billion from N8.59 billion, supported by higher trade receivables of N7.13 billion.
Shareholders’ equity improved to N10.56 billion from N9.99 billion, driven by a reduction in accumulated losses of N1.29 billion from N1.79 billion. Total liabilities moderated to N10.10 billion from N10.40 billion, bringing the company’s debt-to-equity ratio to 0.96 times, compared to 1.04 times as at December 2024, a sign of a firmer capital position despite weaker profitability.