Cadbury Nigeria: Loss Narrows to N10.4bn Amid Revenue Surge and Debt Restructuring
Cadbury Nigeria: Loss Narrows to N10.4bn Amid Revenue Surge and Debt Restructuring
Cadbury Nigeria Plc has reported a loss after tax of N10.4 billion for the financial year ending December 31, 2024, marking a 45% improvement compared to the N19.1 billion loss in 2023. The company’s latest financial report, filed with the Nigerian Exchange, reflects a significant effort to stabilize operations despite persistent economic challenges.
Key Financial Highlights
Revenue Growth and Profitability Challenges
• Revenue surged by 61% to N129.2 billion (from N80.4 billion in 2023), primarily driven by strong performance in the refreshment beverages segment, which accounted for N77.5 billion.
• Gross profit grew marginally by 1% to N17.5 billion, as rising costs and inflationary pressures eroded profit margins.
• Operating profit declined by 19% to N6.4 billion, reflecting increased administrative and distribution expenses.
Debt and Shareholder Equity Restructuring
• Total equity turned positive, rising from a negative N6.5 billion in 2023 to N1.4 billion in 2024.
• Cadbury secured a $40 million intercompany loan from Cadbury Schweppes Overseas Limited (CSOL) to settle overdue forex loans.
• A $20 million debt forgiveness from CSOL was granted due to the severe naira devaluation, which dropped from N911.68/USD in December 2023 to over N1,400/USD in January 2024.
• A $7.72 million intercompany loan conversion into equity was approved by shareholders, increasing shareholder funds by N7.04 billion.
Cost Management and Liabilities Reduction
• Non-current assets rose by 11% to N25.6 billion, attributed to investments in property, plant, and equipment.
• Current liabilities declined by 10% to N62.4 billion, driven by a reduction in borrowings.
• Non-current liabilities decreased by 6% to N707.2 million, reflecting lower employee benefits and lease obligations.
Strategic Moves and Market Outlook
Despite an improved financial position, foreign exchange volatility, high operating costs, and inflation continue to challenge Cadbury Nigeria’s profitability. The company has taken bold steps to restructure its finances, reducing debt burdens while seeking growth opportunities.
With a stronger balance sheet and improved cash flow, Cadbury Nigeria appears to be laying the groundwork for a potential turnaround. However, sustained recovery will depend on macroeconomic stability, cost control measures, and strategic market positioning.
Would you consider Cadbury Nigeria’s latest financial maneuvers a step in the right direction? Share your thoughts below!
Cadbury Nigeria Plc has reported a loss after tax of N10.4 billion for the financial year ending December 31, 2024, marking a 45% improvement compared to the N19.1 billion loss in 2023. The company’s latest financial report, filed with the Nigerian Exchange, reflects a significant effort to stabilize operations despite persistent economic challenges.
Key Financial Highlights
Revenue Growth and Profitability Challenges
• Revenue surged by 61% to N129.2 billion (from N80.4 billion in 2023), primarily driven by strong performance in the refreshment beverages segment, which accounted for N77.5 billion.
• Gross profit grew marginally by 1% to N17.5 billion, as rising costs and inflationary pressures eroded profit margins.
• Operating profit declined by 19% to N6.4 billion, reflecting increased administrative and distribution expenses.
Debt and Shareholder Equity Restructuring
• Total equity turned positive, rising from a negative N6.5 billion in 2023 to N1.4 billion in 2024.
• Cadbury secured a $40 million intercompany loan from Cadbury Schweppes Overseas Limited (CSOL) to settle overdue forex loans.
• A $20 million debt forgiveness from CSOL was granted due to the severe naira devaluation, which dropped from N911.68/USD in December 2023 to over N1,400/USD in January 2024.
• A $7.72 million intercompany loan conversion into equity was approved by shareholders, increasing shareholder funds by N7.04 billion.
Cost Management and Liabilities Reduction
• Non-current assets rose by 11% to N25.6 billion, attributed to investments in property, plant, and equipment.
• Current liabilities declined by 10% to N62.4 billion, driven by a reduction in borrowings.
• Non-current liabilities decreased by 6% to N707.2 million, reflecting lower employee benefits and lease obligations.
Strategic Moves and Market Outlook
Despite an improved financial position, foreign exchange volatility, high operating costs, and inflation continue to challenge Cadbury Nigeria’s profitability. The company has taken bold steps to restructure its finances, reducing debt burdens while seeking growth opportunities.
With a stronger balance sheet and improved cash flow, Cadbury Nigeria appears to be laying the groundwork for a potential turnaround. However, sustained recovery will depend on macroeconomic stability, cost control measures, and strategic market positioning.
Would you consider Cadbury Nigeria’s latest financial maneuvers a step in the right direction? Share your thoughts below!
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