Cadbury Nigeria declares 48 per cent decrease in profit for 2021 Financial Year 

Cadbury Nigeria Plc declared at the close of the week 2021Financial Year (FY) results revealing a profit of N449.71 million, representing a 48 per cent decrease from the prior-year period, despite revenue grew by 19.67 per cent.

The year in review witnessed a persistent increase in prices of goods and services, thereby resulting in inflationary pressures that affected both consumers and producers. In the same vein, producers faced a significant increase in the cost of production as raw materials and freight costs increased.

Hence, although the company increased sales on the back of double-digit food inflation, profit was greatly subdued by production costs which increased by a whopping 21 per cent (y-o-y).

A cursory view of the result shows that the company’s profit was driven by significant domestic sales, one of the company’s reportable segments, while export sales declined during the period.

Both segments delivered revenue of N42.37 billion in the full-year period compared to N35.41 billion in the same period of 2020.

Revenue growth from the domestic sales, was at 25 per cent year on year, generating a total of N40.27 billion. While revenue from export sales raked in N2.10 billion, representing 32 per cent decline Y-o-Y. In addition, the company also made money from interest income on bank deposits, raking in N856 million during the financial year.

Cadbury Nig Plc full-year revenue performance was subjugated by high costs of raw and packaging materials, which also affected profit as a trickled down effect.

Also, the company’s revenue was affected by double-digit food inflation, border closure, volatility in the FX markets and rising international commodity prices.

Although, advertising and sales promotion expenses increased by roughly 10 per cent, during the period.

A further look at the financial results showed that the company’s long-term borrowings stood at N6.60 billion. Cadbury’s total assets are now at N43.69 billion, net assets grew marginally by 0.64 per cent to N13.64 billion.

Cadbury Nigeria Plc’s earnings per share (EPS) for the period was at N24.00, a 52 per cent decrease from N50.00 in FY 2020.

The company last traded at N9.00 per share and has grown by 2.27 per cent from year-to-date.