Cadbury Nigeria Plc reportedly recorded a significant loss in the first half of 2024. However, the loss was less than it incurred during the same period in the previous year.
According to the company’s unaudited financial statements for the half year, which was filed with the Nigeria Exchange Limited last weekend, the company reportedly recorded a loss after tax of N9.72bn for the first half of 2024 which ended on June 30th as against the N14.5bn loss it incurred in 2023.
This indicates a 33 percent improvement from the figures obtained within the same period of the previous year as results from operating activities fell from N6.07bn to N4.73bn, representing a 22 per cent decline in the corresponding year.
According to the unaudited financial statements the company recently released, it achieved N51.44bn revenue in the first half of the year, marking a 44 per cent increase from the N35.61bn recorded in 2023.
The report adds that the company’s refreshment beverages and confectionery segments were significant towards maintaining these figures. It explains that the impact was majorly a result of the fact that the beverages segment recorded an increase of N31.39bn representing 26 per cent while the confectionery segment witnessed an increase of N4.35bn, representing an increase of 68 per cent during the period.
This comes shortly after Cadbury Nigeria recorded a gross 6 per cent decline in profit from N10.23bn to N9.59bn in 2023, despite its recent revenue growth.
The development was attributed to higher production costs and competitive pricing pressures even as the company reported a net finance cost of N18.61bn, a five per cent decrease from the N20.99bn incurred in 2023, linked to foreign exchange losses and interest expenses on borrowings.
The company loss before tax in H1 2024 was N13.88bn, compared to N14.54bn in the prior period of last, representing a five per cent improvement while total equity improved from N1.42bn to N2.53bn in H1 2024, due to the issuance of new shares.
Relatedly, the company’s net cash generated from operating activities stood at N4.35bn, compared to N2.80bn in the previous year while the loss was a 3,374 per cent tumble from a profit of N583.11m in 2022.
In a statement, it was disclosed that in April, the shareholders of consumer goods firm, Cadbury Nigeria Plc will get no dividend payment for the financial year 2023 as the firm suffered an N19.09bn loss after tax, adding that as of June 30 Mondelēz International, through Cadbury Schweppes Overseas Limited, controlled 79.39 per cent of the issue and fully paid the share capital of the company.
“The company is a subsidiary of Mondelēz International incorporated in the United States of America. Mondelēz International, through Cadbury Schweppes Overseas Limited, held 79.39 per cent of the issued and fully paid share capital of the company as of June 30, 2024 (2023: 74.97 per cent). (The) amount due to Cadbury Schweppes Overseas Ltd at the end of the period is NIL for dividend (2023: N2,026.3m for 2020, 2021 and 2022 dividends),” the statement read in part.
Recall that in 2023, Cadbury’s revenue grew by 46 per cent to N80.38bn from N55.21bn in the previous year.
Cardbury which is the second-largest confectionery brand in the world is a British multinational confectionery company owned by Mondelez International and has been operating since 2010.
