By Sulaiman Adenekan

Tuesday, 9 Nov 2010

Chellarams Plc has announced a N446m profit after tax for the financial year, ended March 31, 2010 with a consolidated turnover of N19.42bn.

The Chairman of the company, Asiwaju Solomon Onafowokan, said this at the 61st Annual General Meeting of the company in Kano State.

According to a statement from the company, he said, ”The company has continued to make steady progress, but unfortunately at great cost, given the unsettling economic and business environment in which we operated during the year under review.

”In spite of these challenges, the company was able to achieve a commendable result that reversed the loss of the previous year and posted a positive net profit, on the basis of which the board of directors is proposing a dividend payment subject of course to your approval at this meeting.”

Onafowokan said the positive financial result was made possible through the contribution of its subsidiaries and divisions, adding that the distributive trade division, which was the hub of the business, accounted for about 75 per cent of the total turnover.

The chairman listed some other achievements of the group to include the acquisition of 49 per cent share holding in African Tourism Corporate Travels Limited and the franchise right of the quick service restaurant, ‘KFC‘, which was achieved through the partnership between Chellarams and Devyani International Limited.

He said the company also acquired a property in Kano and established a new branch in Maiduguri, to serve the North eastern zone, adding that it had already entered into a joint venture partnership on an independent power project for the supply of electricity to its head office at Isolo and the adjoining factories at commercially viable rates.

According to him, “The operation of the manufacturing units in the packaging of the company‘s ‘Real‘ and ‘Oldenburger‘ powder milk contributed significantly in ameliorating the disappointing results of Chelltek Industries Limited, whose operations were negatively impacted upon by policy inconsistencies.

”Some other subsidiaries, such as United Technical and Allied Services Limited and Dynamic Industries Limited also contributed to the growth of the group with their continued commendable results.”

According to the statement, the shareholders were rewarded with a dividend of eight kobo per 50 kobo share held by members, subject to deduction of the appropriate withholding tax.

Source: Punch