Cadbury Nigeria Plc reported a pre-tax loss of N28.2 billion in FY 2023, marking a whopping 2269% decline from the N1.3 billion pre-tax profit posted in 2022.
According to the company’s audited financial statement for 2023, Cadbury Nigeria posted a revenue of N80.4 billion in 2023, reflecting a 46% growth from the N55.2 billion posted in 2022.
In 2023, the group recorded a N36.9 billion foreign exchange loss, effectively resulting in a retained loss of N11.4 billion and a negative equity of N6.5 billion.
Recommended reading: Cadbury Intercompany Loan Conversion
Key Highlights (FY 2023 vs FY 2022)
- Revenue: N80.4 billion, +46% YoY
- Cost of sales: N63.0 billion, +33% YoY
- Gross profit: N17.3 billion, +124% YoY
- Selling and distribution expenses: N7.3 billion, +16% YoY
- Operating profit: N7.9 billion, +3957% YoY
- Net finance (cost)/income: -N36.0 billion, -3362% YoY
- Loss before tax: N28.2 billion, -2269% YoY
- Loss for the year: N19.1 billion, -3374% YoY
- Earnings per share: -N10.16, -3374% YoY
- Total assets: N63.4 billion, +6% YoY
What you should know
The company’s primary revenue sources were refreshment beverages, including Cadbury Bournvita and 3-in-1 Hot Chocolate, which collectively generated N52.2 billion in sales in 2023.
This was followed by confectionery products such as TomTom, Candy Caramel, Candy Coffee, Buttermint, and Clorets gum, which contributed N25.6 billion in revenue. Additionally, Bournvita Biscuit, introduced to the market in 2023, generated N609 million in sales.
Facing a challenging financial scenario evidenced by a negative equity of N6.5 billion in 2023, the company is actively pursuing debt restructuring as a necessary measure.
Consequently, the company is currently in the process of converting a $7.7 million debt owed to its principal shareholder, Cadbury Schweppes Overseas Limited, into equity. This move will increase Cadbury Schweppes Overseas Limited’s shareholding in Cadbury Nigeria to 79.39%.
Recommended reading: Cadbury Nigeria reports N27.63 billion loss in FY 2023
