Cadbury cuts loss to N9.72bn in H1

Cadbury Nigeria Plc has reported a loss after tax of N9.72bn for the first half of the year, a 33 per cent improvement in the company’s bottom line when compared to the N14.54bn loss it suffered in the same period of last year.

This was contained in the company’s unaudited financial statements for the half year ended June 30, 2024, filed with the Nigeria Exchange Limited on Friday.

The company achieved N51.44bn revenue in the first half of the year, marking a 44 per cent increase from the N35.61bn recorded in 2023, buoyed by the refreshment beverages and confectionery segments, which saw increases of 26 per cent and 68 per cent to N31.39bn and N4.35bn, respectively, during this period.

Despite revenue growth, Cadbury Nigeria’s gross profit declined by six per cent to N9.59bn from N10.23bn in 2023, due to higher production costs and competitive pricing pressures.

Results from operating activities fell by 22 per cent, from N6.07bn to N4.73bn in the corresponding year.

Cadbury Nigeria 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.

Total equity improved from N1.42bn to N2.53bn in H1 2024, due to the issuance of new shares.

The company’s net cash generated from operating activities stood at N4.35bn, compared to N2.80bn in the previous year.

According to the statement, 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.

The loss was a 3,374 per cent tumble from a profit of N583.11m in 2022.

In 2023, Cadbury’s revenue grew by 46 per cent to N80.38bn from N55.21bn in the previous year.

It added 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),” it stated.