After Nestle Nigeria PLC reported its lowest profit in years, Cadbury, its arch-rival has posted a more damning report that showed that its loss increased by 268% year on year.
The blow of the economy melt down struck the company badly as it recorded NGN296.4 million as loss for the year compared to NGN1.1 billion profit made in 2015. Which represents 268% loss on year on year comparison.
On the topline of the result, the company’s gross revenue for the year was NGN29.7 billion compared to NGN27.8 billion recorded in fiscal 2015.
The company’s cost of sales for the year was NGN23.1 billion compared to NGN18.8 billion posted in 2015.
Cadbury recorded gross profit of NGN6.8 billion in the year in review compared to NGN8.9 billion recorded in the financial year 2015. it operating profit for the year reduced to NGN732.8 million from NGN1.4 billion recorded in 2015.
Cadbury Nigeria plc recorded NGN562.8 million as profit before taxation in contrast to NGN1.5 billion recorded in 2015.
Cadbury Nigeria plc acquired total assets of NGN28.3 billion in 2016 compared to NGN28.4 billion recorded in 2015. It recorded total liabilities of NGN17.3 billion compared to NGN16.1 billion recorded in 2015.
In the report, Cadbury said its refreshment beverage category (Bournvita, Cadbury 3-in-1 Hot Chocolate) declined from 60% in 2015 to 55% in 2016. The impact of the inflation that led to prices increases must have cut demand and coupled with competition from Nestle’s Milo.
Cadbury Nigeria Plc is owned 74.97% (2015: 74.97%) by Cadbury Schweppes Overseas Limited, a company incorporated in the United Kingdom, and 25.03% (2015: 25.03%) by a highly diversified spread of Nigerian individual and institutional shareholders. CSOL is owned by Mondelēz International