Chellarams sales decline worsens as rising costs take toll amid stiff competition
Chukwuemeka Obioma is Businessamlive Reporter.
You can contact him on chukwuemeka.obioma@businessamlive.com with stories and commentary.
In its financial report for the full year ending 31 March 2018, released lately, Chellarams, a diversified conglomerate with special interests in the manufacture and importation of dairy products, industrial chemicals and turnkey equipment for the foam and mattress industry declared that total group sales declined by 30 percent to N8.9billion from N12.4 billion.
The dairy industry player said its combined FMCG and bulk milk ingredients business fell by 40 percent to ₦2.7bn from ₦4.5bn in the previous year. Its fast moving consumer goods (FMCG) business segment which, includes packaged Oldenburger, Regal and Real milk brands, as well as its Real Active malted food drink suffered a decline of 65 percent to ₦1.3bn from ₦3.8bn in 2017.
Chellarams Ingredients business which consists of bulk branded milk sales to other manufacturers and food processors however saw a 102 percent increase in sales to ₦1.4billion from ₦692million the previous year.