Cadbury Nigeria incurs N20.9bn in exchange rate loss
Cadbury Nigeria Plc recorded a loss before tax of N17.9 billion in the second quarter of 2023. This compares to the N800 million profit reported at the same time in 2022.
The reason for the loss was a whopping N20.9 billion write-down the company took due to the impact of the unification of the naira on its loans.
The company carries forex-related loans with dollar-denominated interest rate components that triggered the losses. The depreciation of the Naira from about N460/$1 to about N790/$1 triggered the forex losses.
However, Cadbury was able to grow its top-line revenues by about 26 per cent to N19 billion while gross profit also rose 176 per cent to N7.2 billion.
Despite the losses arising from the extraordinary fx losses, Cadbury posted an operating profit of N1.5 billion, representing a 64 per cent increase yearly.
Revenue for the quarter was N19.04 billion compared to N15.09 billion in the corresponding period of 2022.
Cost of Sales (CoS) marginally declined by 5.21 per cent to N11.82 billion from N12.47 billion recorded in the same period last year.
Gross profit increased significantly by 175.57 per cent to N7.22 billion from N2.62 billion reported last year.
Pre-tax loss for the quarter declined to N17.9 billion from N800 million profit in Q2 2022 (due to the impact of fx unification on dollar-related loans).
Cash flow equivalent for the half year ended 30th June 2023 was N39.17 billion, an increase of 88 per cent from N20.84 billion recorded in the same period last year.
Cadbury Nigeria Plc is a company domiciled in Nigeria. The address of the Company’s registered office is Lateef Jakande Road, Ikeja, Lagos.
The Company is principally engaged in manufacturing and selling branded fast-moving consumer goods mostly to the Nigerian market, but also for exports.
The Company’s brands fall into four principal categories: refreshment beverages, confectionery, biscuits and intermediate cocoa products.
Cadbury Bournvita and 3-in-1 Hot Chocolate are the refreshment beverages, TomTom, Candy Caramel, Candy Coffee, Buttermint and Clorets gum are the confectionery products, Bournvita Biscuit is the biscuit category while Cocoa Butter is a key product in the intermediate cocoa category.
