Cadbury Nigeria Plc on Thursday, released its unaudited Interim Financial Information for the Half Year ended 30 June 2020, to the Nigerian Stock Exchange and the Investing public.
During the period in review, Cadbury revenue dropped by 18% to N15.917 billion from N19.455 billion reported in H1 2019. The profit for the period dipped by 20% to N536.660 million from N669.938 million the company posted in the same period in 2019.
Cadbury also reported a 20% decline in basic earnings per share to 28.57kobo from 35.67kobo in H1 2019.
The drop in the company’s revenue and profit can be attributed the poor financial performance in the second quarter of 2020 (April – June). During this period, Cadbury posted a loss of N102.276 million (Q2 2019 profit – N163.185 million) following a 27.60% drop in revenue to N7.363 billion from N10.171 billion reported in Q2 2019.
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Review of the company’s balance sheet showed that the total assets increased by 13.99% to N32.831 billion as at 30 June from N28.802 billion posted in 31 December 2019. The increase is reflected by a 28.91% rise in total liabilities to N19.641 billion from N15.236 billion.
The major contributor to the company’s total liability is Trade and other payable, which increased to N14.154 billion from N9.617 billion. Cadbury did not record any loans or borrowings.
On the other hand, total equity declined due to drop in retained earnings. The retained earnings dropped to N8.452 billion from N8.829 billion in 2019. This led to the company’s total equity settling at N13.191 billion for the period in review from N13.566 billion in 2019.
Cadbury posted a positive net cash from its operating activities, whereas negative net cash was reported from both investing and financing activities of the company. Nevertheless the cash and equivalent rose to N6.537 billion from N2.885 billion posted in 2019.
Cadbury Nigeria Plc is into the business of manufacturing and marketing of foods, food drinks, confectionery and domestic products. The company share price has remained unchanged at N7.25 per share since Thursday 16 July 2020. Although, at the time of this report, it is selling between N6.85 and N7.00 per share. The 52 week high and low prices are N11.65 per share and N4.95 per share respectively.
YTD the share price is down by 31.28% whereas in 4 years and 5 years is has lost 41.43% and 79.32% of its value respectively.
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’s brands fall into three principal categories, namely: refreshment beverages, confectionary and intermediate cocoa products. Cadbury Bournvita and Cadbury 3-in-1 hot chocolate are the refreshment beverages, Tom Tom, Buttermint and Clorets gum are the Confectionery products while Cocoa Butter is a key product in the intermediate cocoa category.
Cadbury Nigeria Plc is owned 74.97% (2019: 74.97%) by Cadbury Schweppes Overseas Limited (“CSOL”), incorporated in the United Kingdom while CSOL is owned by Mondelez International and 25.03% (2019: 25.03%) by a highly diversified spread of Nigerian individual and institutional shareholders