Chams Holding Company Plc generated N7.7 billion in revenue from its card and biometrics services during the first half of 2024, leading to a surge in profit after tax to N1.3 billion, according to the company's unaudited financial statements filed with the Nigerian Exchange (NGX).
The company's profit after tax soared by 1,200% compared to N100 million recorded in the same period of 2023, while revenue grew by 540% from N1.2 billion in H1 2023.
Revenue Breakdown and Key Drivers
Chams' revenue was primarily driven by its card and biometrics segment, which contributed N7.7 billion, representing a substantial increase from N1.1 billion in the prior year. The company's identity management and verification services also saw growth, generating N200 million compared to N100 million in H1 2023.
Other revenue streams included technology services, which brought in N100 million, and other income of N100 million, according to the financial report. The company attributed the strong performance to increased demand for digital identity solutions and payment infrastructure in Nigeria.
Cost and Profitability Analysis
Despite the revenue surge, Chams' cost of sales rose to N5.5 billion from N800 million, reflecting higher operational expenses tied to service delivery. However, the company managed to improve its gross profit margin, with gross profit climbing to N2.5 billion from N400 million in H1 2023.
Operating expenses increased to N1.2 billion from N300 million, driven by administrative costs and selling expenses. Nevertheless, operating profit jumped to N1.3 billion from N100 million, according to the filing.
Balance Sheet and Financial Position
Chams' total assets grew to N19.5 billion as of June 30, 2024, up from N17.2 billion at the end of December 2023. The company's total liabilities also increased to N8.5 billion from N7.1 billion, while shareholders' funds rose to N11 billion from N10.1 billion.
Cash and cash equivalents stood at N1.2 billion, compared to N800 million at the start of the year, indicating improved liquidity. The company's earnings per share increased to 10 kobo from 1 kobo in H1 2023.
Outlook and Strategic Focus
Chams Holding Company, which operates through subsidiaries including ChamsAccess and ChamsSwitch, continues to focus on expanding its digital identity and payment solutions across Africa. The company's performance in H1 2024 reflects growing adoption of biometric verification systems for banking, government, and telecom services in Nigeria.
According to the company's statement, management remains optimistic about sustained growth driven by regulatory mandates for biometric registration and increasing digital payment adoption. The financial results were released on the NGX website on August 19, 2024.
