Cadbury Nigeria Records N424m Loss Amid Rising Cost

A multinational confectionery  and food drinks company, Cadbury Nigeria Plc, reported a net loss of N424m for the first six months of 2018, hurt by rising cost.
The Bournvita maker which emerged from a loss position at the end of 2017 said that a high selling and distribution expense and high net finance cost (Bank interest charges) erased all gains made in the period under review.

Despite the loss, the company recorded 8% sales growth in the six months to the end of June, helped by sales acceleration in the second quarter, which grew 14% to N9.3bn.
In the company’s financial scorecard released, Cadbury Nigeria, however, reported a growth in its revenue, which went up by 8 per cent to N17.6 billion from N16.3 billion in H1 2017.

Also, the finance income appreciated by 10.7 per cent to N73.1 million from N66 million, while the firm recorded a 33.8 per cent increase in its other income to N25.4 million from N19 million.
However, the gross profit went down to N2.8 billion in H1 2018 from N3 billion in H1 2017, while the costs of sales rose to N14.7 billion in the first six months of this year from N13.2 billion in the first six months of last year.

Cadbury Nigeria stated in the results that it reduced its selling and distribution expenses by 18 per cent this time to N2.2 billion from N2.7 billion, while the administrative expenses were also trimmed to N771.1 million from N1.1 billion.
While the total assets of Cadbury Nigeria closed at N26.8 billion as at June 30, 2018, against N31 billion as at June 30, 2017, the total liabilities reduced to N15.5 billion from N20.4 billion, with the shareholders’ fund growing to N11.3 billion from N10.5 billion.

August 18, 2018