Cadbury Nigeria Plc, a leading manufacturer of refreshment beverages and confectionery, reported a staggering pre-tax loss of N28.2 billion for the fiscal year ended December 2023. This marks a significant downturn from the N1.3 billion pre-tax profit recorded in the previous year, indicating a decline of 2269%.
Despite achieving a 46% increase in revenue, reaching N80.4 billion up from N55.2 billion in 2022, the company faced a dire financial situation.
The growth in revenue was overshadowed by a massive foreign exchange loss of N36.9 billion, leading to a retained loss of N11.4 billion and plunging the company into negative equity of N6.5 billion.
Financial Highlights of FY 2023 Compared to FY 2022
Revenue saw a significant rise to N80.4 billion, up by 46% year-over-year.
The cost of sales was N63.0 billion, reflecting a 33% increase.
Gross profit surged to N17.3 billion, marking a 124% increase.
Operating profit stood at N7.9 billion, up by an astonishing 3957%.
A stark net finance cost of -N36.0 billion was recorded, a dramatic fall of 3362%.
The year ended with a loss before tax of N28.2 billion, a sharp decline of 2269%.
The loss for the year amounted to N19.1 billion, worsening by 3374%.
Earnings per share dropped to -N10.16, mirroring the 3374% decline.
Total assets marginally increased by 6% to N63.4 billion.
Key Revenue Sources and Strategic Moves
Cadbury Nigeria’s main revenue generators were its refreshment beverages, including Cadbury Bournvita and 3-in-1 Hot Chocolate, which brought in N52.2 billion. The confectionery segment, featuring products like TomTom, Candy Caramel, and Buttermint, contributed N25.6 billion. Notably, the newly launched Bournvita Biscuit added N609 million in sales.
Facing this financial adversity, Cadbury Nigeria is actively seeking ways to stabilize its operations. A crucial step in this direction is the proposed debt restructuring, especially the conversion of a $7.7 million debt owed to Cadbury Schweppes Overseas Limited into equity. This move is expected to increase Cadbury Schweppes Overseas Limited’s shareholding in the Nigerian subsidiary to 79.39%.
