Cadbury reports 18% decline in revenue


By Kayode Tokede

Cadbury Nigeria Plc on Thursday released its half-year report for 2020, indicating that it recorded 18 per cent decline in its revenue to N15.917 billion in the review period as against N19.455 billion in the corresponding period of 2019.

The company recorded Profit Before Tax of N766.657 million which was 20 per cent lower than the N957.055 million reported in the same period of 2019.

Its Profit for the period also dropped by 20 per cent, from N669.938 million in 2019 to N536.660 million in 2020.

Its Earnings Per Share (EPS) for the period declined by 19 per cent to N0.29 from N0.36 in the preceding period

With outstanding shares of around 1.878 billion, Cadbury’s Price to Earnings (PE) ratio is 11.29 while its EPS is 0.64. Its dividend yield is 6.76 per cent.

The company in its note to the Nigerian Stock Exchange said: “The company has implemented safety guidelines and is currently monitoring the impact of the pandemic on its business.

“The company has concluded that the pandemic is a non-adjusting event which does not require any adjustment to the interim financial information for the period ended 30 June 2020.

“However, given the complexity and rapid escalation of events, it is not currently practicable to make a reliable quantified estimate of the potential impact on the Company,” Cadbury said without mentioning reasons for the negative drift in its unaudited interim financial statement for the period in question, posted by the Nigerian Stock Exchange (NSE).

Cadbury Schweppes Overseas Limited, the majority owned has 74.97 per cent stake. Cadbury Nigeria evolved from a precursory British merchant firm, leveraging the country’s blossoming cocoa trade of the 1950s to supply the commodity for processing abroad.

The Nigerian operation metamorphosed to a packaging plant, established to repack bulk imports before undergoing series of transformation with the passage of time.

Cadbury closed trade on the floor of the NSE on Thursday at N7.25 per share.