Chams Holding reports 218% profit increase in 2024

Chams Holding Company Plc, a leading technology solutions provider, has reported a 218% increase in after-tax profit for the 2024 fiscal year, driven by heightened demand for its services.

Despite macroeconomic challenges that impacted many businesses, the company demonstrated resilience, recording a profit after tax of N1.3 billion, a significant rise from N407.6 million in 2023. This performance reflects Chams Holding’s strategic initiatives and operational efficiencies, contributing to a stronger bottom line.

Revenue Growth and Key Business Segments
Chams Holding also posted a 53% increase in revenue, rising from N9.47 billion in 2023 to N14.51 billion in 2024. This growth was fueled by strong performances across its core business segments:

-Printer Solutions & Access: N7.31 billion
-Card Personalisation & Printing: N6.48 billion
-Agency Banking & Mobile Money Operations: N475 million
-Payment Systems Solutions: N239 million
The company’s cost of sales climbed to N10.1 billion, up from N7.3 billion in 2023, reflecting increased business activities and expansion efforts. Despite this, gross profit surged to N4.37 billion, marking an improvement from N2.1 billion in the prior year.

Operational Efficiency and Profitability
Chams Holding’s strategic cost management was evident in its administrative expenses (N1.54 billion) and marketing expenses (N274.1 million). These efforts contributed to an operating profit of N1.89 billion, more than double the N809 million recorded in 2023.

ALSO READ: LEADING WITH VISION: AKOSSA MARY HIWA’S INSIGHTS ON MARKETING AND LEADERSHIP

For shareholders, the results were particularly promising, with earnings per share (EPS) rising from N4.53 kobo to N23.07 kobo, reflecting the company’s increasing profitability and value creation.

Strengthening Financial Position
The company’s total assets grew to N21.08 billion, up from N18.9 billion, driven by:

-Increased trade receivables (N6.7 billion)
-Expansion in property, plant, and equipment (N3.3 billion)
-Growth in cash and cash equivalents (N2.37 billion)
Despite a rise in total liabilities to N10.12 billion, Chams Holding’s net assets improved to N10.96 billion, underscoring its strong financial health. The company also maintained a robust liquidity position, with cash and cash equivalents rising from N1.89 billion to N2.37 billion.

Investment in Technology and Future Growth
Chams Holding continues to invest in technology and financial services, positioning itself for further expansion in Nigeria’s growing digital economy. Its strategic focus on agency banking, mobile money operations, and payment systems solutions aligns with its vision to deepen financial inclusion and leverage fintech opportunities.

Additionally, the company reported an N1.98 billion increase in long-term loans, which were directed toward expansion projects, technological upgrades, and strategic initiatives aimed at sustaining long-term growth.