Cadbury Nigeria Plc (NSE TICKER: CADBURY) earlier today released its un-audited Interim Financial Information for the First Quarter Ended 31st March 2020, posting a Revenue of NGN8.55bn, 8.08% lower than the NGN9.28bn recorded for the same period in 2019.
Despite the slight drop in Revenue, the company was able to grow its profit by 26.08% to NGN638.93mn (Q1 2019: 506.75mn) by an effective control of the Cost of sales, Administrative expenses, and a total elimination of Finance cost (The report shows the company currently have no short or long term debts).
The company recorded an improved profit margin of 7.49% (Q1 2019: 5.46%). The company Asset stood at NGN32.06bn (FY 2019: 28.80bn), funded by a Total Liability of NGN17.85bn (FY 2019: NGN15.23bn) and a Total Equity of NGN14.20bn (FY 2019: NGN13.56bn).
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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 the manufacture and sale of branded fast-moving consumer goods mostly to the Nigerian market, but also for exports.
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, TomTom, 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.
Cadbury Nigeria Plc has 1,878,202,040 outstanding shares and a market capitalization of NGN11.83bn.
Views of Analysts @Investogist
CADBURY shares have lost 40.28% of its value since the beginning of this year, and 44.49% and 84.21% over 1 year and 5 years, respectively.
Our analysis puts the fair value taking into consideration the recent financial performances at NGN2.80 – NGN6.20. This stock price at the end of trading today was NGN6.30 slightly above our valuation. This stock should be on the watchlist, with a view of acquiring it if it falls into the fair value range.
Written by:
Basil Maduakor
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