CADBURY NIGERIA PLC POSTED A LOSS IN SPITE OF REVENUE INCREASE AT THE END OF JUNE 2021
Cadbury Nigeria Plc (CADBURY) has released its half-year results to 30th June 2021 on the floor of the Nigerian Stock Exchange. The results showed a revenue increase of 16.4% to NGN18.5 billion relative to the corresponding period of the previous year. Loss Before Tax was NGN516.2 million as against Profit Before Tax of NGN766.7 million declared at the end of the second quarter of last year. The company made a Loss After Tax of NGN516.2 million at the end of 2021 half-year in contrast to Profit After Tax of NGN536.7 million announced at the end of the corresponding period of 2020.
- Revenue increased in spite of a huge drop in export sales
Domestic sale of its products increased by NGN4.5 billion or 34% year-over-year against the backdrop of the gradual recovery of Nigeria from the COVID-19 pandemic. Export sales shrank to NGN721.3 million from NGN2.6 billion posted at the end of June 2020. This was mainly due to less export of its intermediate cocoa products such as cocoa powder, cocoa butter, cocoa liquor and cocoa cake. CADBURY realised only NGN665.4 million from the sale of intermediate cocoa products in the half-year of 2021 compared to NGN2.1 billion in the commensurate period last year.
- High cost of sales depressed profit margins
Cost of sales rose faster than revenue resulting in a decrease in gross profit from NGN3.3 billion at end of June 2020 to NGN2.2 billion for the half-year ended 3oth June 2021. The cost of sales was 88.2% of turnover compared to 79.2% of a year ago. The operating profit margin was -3.3% as opposed to 4.5% of the half-year of 2020. CADBURY posted a Loss After Tax despite earning an interest income of NGN150.2 million on bank deposits.
- Borrowings and capital expenditure increased
Capital spending increased to NGN636.8 million which was a 153.3% boost year-over-year. Intercompany loan of NGN3.5 billion was obtained and interest of NGN56.4 million was paid on intercompany loan at 2021 half-year end. Altogether, CADBURY has borrowed an additional NGN4.2 billion in six months to June 30, 2021.
ABOUT CADBURY NIGERIA PLC
Cadbury Nigeria Plc, established in 1965, produces food products for the domestic and export markets. It is the maker of popular brands like Bournvita, Tom Tom and Buttermint. CADBURY is a subsidiary of Mondelēz International which was formerly known as Kraft Foods Inc. The company's business is categorised into refreshment beverages, confectionery and intermediate cocoa products. READ THE FULL REPORT ON CADBURY NIGERIA PLC HERE.