Cadbury Nigeria Posts N7.32bn Net Loss in Q1
Foreign exchange loss damaged Cadbury Nigeria Plc financial performance in the first quarter of 2024, its latest unaudited report showed. The consume good company posted net loss of more than N7 billion in the first three months of operation in the current year as result of about N13.4 billion loss sustained due to exposure to foreign currency in the period.
Details from its financial results revealed that Cadbury Nigeria Plc. (Cadbury) reported a 43.1% year on year increase in revenue to N23.70 billion in Q1 2024.
According to CSL Stockbrokers Limited, most of the company turnover came from domestic sales which grew to N21.95 billion in Q1 2024 from N16.08 billion in Q1 2023.
Cadbury Nigeria’s export sales also increased to N1.75 billion in the period from N489 million in Q1 2023, according to analysts review on the company’s performance for the period.
Its cost of sales as adjusted for depreciation jumped 84.8% year on year to N18.37 billion in Q1 2024 from N9.94 billion in Q1 2023.
Analysts stated that this led to a decline in gross profit to N5.33 billion in Q1 2024 down by 19.6% year on year from N6.62 billion in the comparable period in 2023.
Cadbury Nigeria’s adjusted operating expenses increased by 21.6% year on year to settle at N2.07 billion from N1.70 billion in Q1 2023. CSL Stockbrokers said this was driven by growth in both selling and distribution expense and administrative expense.
The company’s selling and distribution expense as adjusted for depreciation grew by 6.2% year on year to N1.39 billion in Q1 2024 from N1.48 billion in the same period of the prior year.
The administrative expense as adjusted for depreciation rose to N680 million in Q1 2024 from N221 million in Q1 2023, according to analysts review.
This brought Cadbury’s earnings before interest tax depreciation and amortization (EBITDA) to N3.26 billion, a decline of 33.8% year on year in Q1 2024 from N4.92 billion in Q1 2023
Cadbury’s operating profit settle at N2.77 billion, a decline of 39.0% year on year in Q1 2024 versus N4.54 billion posted in Q1 2023.
In Q1, net finance expenseS climbed to N13.22 billion, driven by N13.39 billion in FX loss, completely eroded Cadbury’s chance of profitability in the period, CSL Stockbrokers said.
This led to a pretax loss of N10.5 billion in Q1 2024 versus N4.93 billion profit in Q1 2023. Analysts said an income tax credit of N3.32 billion was able to bring the company’s net loss to N7.32 billion in Q1 2024 compared with N3.45 billion in profit Q1 2023.
