Cadbury Nigeria Plc has reported a staggering pre-tax loss of N28.2 billion for the fiscal year 2023, representing a significant decline of 2269% from the N1.3 billion pre-tax profit recorded in 2022.
The company’s audited financial statement for 2023 reveals a revenue of N80.4 billion, indicating a substantial growth of 46% compared to the N55.2 billion generated in 2022.
However, despite the revenue growth, Cadbury Nigeria faced significant challenges, particularly in foreign exchange transactions, resulting in a loss of N36.9 billion foreign exchange. Consequently, the company incurred a retained loss of N11.4 billion and ended the year with negative equity amounting to N6.5 billion.
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
Primary revenue sources for Cadbury Nigeria included refreshment beverages such as Cadbury Bournvita and 3-in-1 Hot Chocolate, which generated N52.2 billion in sales, followed by confectionery products, which contributed N25.6 billion in revenue. The introduction of Bournvita Biscuit in 2023 added N609 million in sales.
Cadbury Nigeria is actively pursuing debt restructuring measures in response to the challenging financial situation and negative equity. The company is converting a $7.7 million debt owed to its principal shareholder, Cadbury Schweppes Overseas Limited, into equity. This action will increase Cadbury Schweppes Overseas Limited’s shareholding in Cadbury Nigeria to 79.39%.
