Cadbury Grows PAT by 26.1% to N639m in Q1 2020 Results

Cadbury Nigeria Plc released its Q1 2020 Unaudited results for the period ended March 31st, 2020. The beverage company’s profit before tax jumped by 26% to N912.7 million compared to N723.9 million in Q1 2019.

• Revenue declined by -7.9% to N8.6bn from N9.3bn in the previous quarter.
• Profit before tax grew by 26.1% to N913m.
• Profit after tax grew by 26.1% to N639m.
• Net Assets grew by 4.7% to N14.2bn from N13.6bn.

According to the interim financial statement, the company grew its profit before tax (PBT) by 26.1 percent to N912.8 million from N723.9 million.

A closer look by Brand Spur, Cadbury’s revenue for the period declined by 7.9 percent to N8.6 billion from N9.3 billion in the same period of 2019.

A further look by Brand Spur shows that the reduction was as a result of drop in domestic sales, which fell to N7.3 billion from N8.3 billion. The main reason for this was the low purchasing power of consumers in the country.

The revenue generated by the firm showed that the decline was mainly impacted by low sales from its refreshment beverages like Bournvita and its 3-in-1 Hot Chocolate product.

Cadbury Nigeria experienced a spike in its export sales, N1.2 billion as against N945.5 million in Q1 2019 in the period under review.

In the first quarter of this year, the company recorded a slight decline in cost of sales, N6.3 billion in contrast to N6.9 billion in the corresponding period of last year.

Gross profit declined to N2.3 billion from N2.4 billion, while other income jumped to N77.6 million from N45.9 million.

The management cut down the selling and distribution costs to N1.1 billion from N1.3 billion as well as the administrative expenses to N339.7 million from N449.1 million IN Q1 2020

The company further said its finance income dropped to N30.3 million from N36.6 million, while the net finance income increased to N30.3 million from N10.3 million.

Meanwhile, basic earnings per share for Q1 2020 increased by N34.02 from N26.98, also indicating a 26% jump. Cadbury Nigeria’s share price ended Tuesday’s trading on the Nigerian Stock Exchange at N6.30.

April 22, 2020