ICT firm, Chams Plc, recorded revenue decline in the second quarter of 2020 but was able to save its total profit from plummeting along with its earnings. According to the financial statement seen by AllNews, Chams Plc recorded N103.1 million in Q2 2020, failing to surpass the Q2 2019 revenue.
It was disclosed that in the corresponding period of 2019, Chams Plc generated N122.5 million, reflecting a significant drop for the company that manufactures ID cards, debit card, cbt engine, computer hardware printer, and also offers other services.
Chams Plc was able to reduce the impact of its revenue decline on its total profit by cutting down its cost of production. The cost of sales declined to N31.1 million in the second quarter of this year, from the N51.9 million it cost the company to produce its products in Q2 last year.
The reduction in cost of sales prevented the company's gross profit from declining beyond the N70.6 million it recorded in the second quarter of 2019, as it generated N72 million in the second quarter of this year.
Chams Plc, however, recorded loss in its Profit before tax, as it reported N49.4 million as loss in second quarter of 2020, higher than the N45.6 million it reported in the corresponding period of 2019. It also recorded loss in Profit after tax, as it reported N49.4 million in Q2 2020, while in Q2 2019, Chams Plc reported N68.4 million.