Cadbury Nigeria reports N28.2 billion loss in 2023, shareholders’ funds wiped out 

Cadbury Nigeria reports N28.2 billion loss in 2023, shareholders’ funds wiped out 

Cadbury Nigeria Plc reported a pre-tax loss of N28.2 billion in FY 2023, marking a whopping 2269% decline from the N1.3 billion pre-tax profit posted in 2022.  

According to the company’s audited financial statement for 2023, Cadbury Nigeria posted a revenue of N80.4 billion in 2023, reflecting a 46% growth from the N55.2 billion posted in 2022.  

In 2023, the group recorded a N36.9 billion foreign exchange loss, effectively resulting in a retained loss of N11.4 billion and a negative equity of N6.5 billion.  

Key Highlights (FY 2023 vs FY 2022) 

Revenue: N80.4 billion, +46% YoY  
Cost of sales: N63.0 billion, +33% YoY  
Gross profit: N17.3 billion, +124% YoY  
Selling and distribution expenses: N7.3 billion, +16% YoY  
Operating profit: N7.9 billion, +3957% YoY  
Net finance (cost)/income: -N36.0 billion, -3362% YoY  
Loss before tax: N28.2 billion, -2269% YoY  
Loss for the year: N19.1 billion, -3374% YoY  
Earnings per share: -N10.16, -3374% YoY  
Total assets: N63.4 billion, +6% YoY  

What you should know 

The company’s primary revenue sources were refreshment beverages, including Cadbury Bournvita and 3-in-1 Hot Chocolate, which collectively generated N52.2 billion in sales in 2023.

This was followed by confectionery products such as TomTom, Candy Caramel, Candy Coffee, Buttermint, and Clorets gum, which contributed N25.6 billion in revenue. Additionally, Bournvita Biscuit, introduced to the market in 2023, generated N609 million in sales.  

Facing a challenging financial scenario evidenced by a negative equity of N6.5 billion in 2023, the company is actively pursuing debt restructuring as a necessary measure.

Consequently, the company is currently in the process of converting a $7.7 million debt owed to its principal shareholder, Cadbury Schweppes Overseas Limited, into equity. This move will increase Cadbury Schweppes Overseas Limited’s shareholding in Cadbury Nigeria to 79.39%.  

Follow us for Breaking News and Market Intelligence.

Full Story:
TAGS: #Cadbury #Nigeria #reports #N28.2 #billion #loss #shareholders #funds #wiped


Be the first to comment

Leave a Reply