Cadbury Nigeria Plc Announces No Dividend for 2023 FY

Cadbury Nigeria Plc, a consumer goods company, has announced that it will not pay dividends to its shareholders for the 2023 fiscal year because it suffered a huge loss of N19.09 billion after taxes.

According to the firm financial statements and annual report submitted to the Nigerian Exchange Limited on Tuesday, the company lost N583.11 million in 2023, a 3,374% decrease from the profit of N583.11 million in 2022.

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Cadbury's revenue increased to N80.38 billion in 2023 from N55.21 billion the year before, a 46% increase.

Cadbury Nigeria Plc recommended that there would not be a dividend for the year because of the loss incurred. Looking at 2022, shareholders received a dividend of N751.28 billion.

Cadbury Nigeria Plc's retained earnings declined by N11.36 billion, bringing the total equity down from N13.30 billion to N6.51 billion.

Cadbury Nigeria Plc's net finance cost surged by over 3000% to N36.03bn from N1.10bn.

Cadbury Schweppes Overseas Limited, a UK-incorporated company, owns 74.97% of Cadbury Nigeria Plc, while Mondelēz International owns CSOL. 

The company said a wide range of individual and institutional investors hold approximately 25.03%.

The company's brands fall into three principal categories: cocoa beverages, gum and candy, and intermediate cocoa products.

On January 9, 1965, the company was established as a limited company by shares in Nigeria before it started trading on the Nigerian Stock Exchange in 1976.

The company's main business was producing and selling branded fast-moving consumer goods, primarily to the Nigerian market and for export to other countries in West Africa. However, it makes various intermediate products, including cake, powder, spirits, and cocoa butter.

Cocoa butter, liquor, and powder are among the intermediate products produced at its cocoa processing plant in Ondo State.

Back Story

In Q2 2023, Cadbury Nigeria Plc faced a major setback that led to a N17.9 billion loss before tax. For the same period as the previous year, the company realised N800 million in profit during the same period in 2022.

The company's N20.9 billion write-down, resulting from the naira's unification's impact on its loans, was the main cause of this significant loss. The naira's depreciation, which dropped from roughly N460/$1 to roughly N790/$1, resulted in considerable forex losses for Cadbury, which holds forex-related loans with dollar-denominated interest rate components.

However, Cadbury did see growth in other areas despite this difficult situation. The gross profit increased by 176% to N7.2 billion, while top-line revenues increased by 26% to N19 billion.

Notably, Cadbury was still able to report an operating profit of N1.5 billion, which represents a 64% annual increase, despite the losses incurred due to the exceptional forex losses.

What Is Cadbury Nigeria Plc Share Price?
As of the time of this published article, the share price of Cadbury Nigeria Plc is N19.00.