Chams Holdco Reports N20 Million Profit After Tax, Achieves Profitability for the First Time Since COVID-19

Chams Holding Company Plc reported a profit after tax of N20.2 million in fiscal year 2023, the company’s first profit since 2019.

Compared to the N375.2 million loss after taxes reported in 2022, the N20 million posted reflects a 106% improvement.

The group reported N9.6 billion in revenue in 2023, up from N5.1 billion in 2022, according to its audited financial statement for 2023, showing a 90% revenue rise.

The IT company’s card solution, which brought in N3.6 billion, was its main source of income. Its new membership solution came in second, bringing in N2 billion.   

Important Points (FY 2023 vs. FY 2022)

• Revenue: N9.6 billion, +90% YoY
• Cost of sales: N7.8 billion, +92% YoY
• Gross profit: N1.86 billion, +85% YoY
• Selling and marketing expenses: N215.7 million, +611% YoY
• Operating profit: N370.5 million, +6888% YoY
• Profit before tax: N248.5 million, +293% YoY
• Profit for the year: N20.2 million, +106% YoY
• Total assets: N19.0 billion, +16% YoY  

Although Chams Holdco’s return to profitability is seen as a positive development, there is still work to be done given the company’s ongoing losses of N2.2 billion.

Because it had no obligations that needed to be paid in foreign currency, the group did not also incur any foreign exchange losses.

Kegow, the company’s payment solution, brought in N9.8 million in revenue in 2023, a 453% increase over N1.8 million in 2022.

But with its bulk SMS solution, the group only made N17,000—a 99.8% decrease from the N7.2 million they made in 2022.

Since its phone, computer, and accessory businesses generated no income in 2023, Chams is evolving into a core software solution supplier.