Cadbury Nigeria Releases Audited Report For 2020 revenue declined by 10 percent

Cadbury Nigeria, Food and dairy products manufacturing company, released its audited reports for the entire year 2020 on Tuesday, the 30th March.

According to the report, the company's year-on-year revenue declined by 10 percent, from the N39.3 billion amassed last year to N35.4 billion. Profit for the year took a big hit, with the company recording a 13 percent year-on-year loss to settle at N931.8 million from N1.07 billion last year.

Gross profit also went down to approximately N5.9 billion from the N8.3 billion recorded last year. Cost of sales was N29.5 billion, 5 percent less than last year, and profit after tax tumbled to N408 million from N1.5 billion last year. The cost of sales went up by 5 percent from last year to N29.5 billion. Administrative expenses were at a total of N1.16 billion, 36 percent year-on-year loss.

A dividend of 18 kobo per-share was proposed for investors, with the shares trading at N8.10.

Performance In The Market

Cadbury stocks underperformed in the Nigerian food industry and general Nigerian market which had a return of 73.3 percent and 74.4 percent over the past year.

Based on the price to earnings ratio of the stocks, its also of poor value at 95.2x compared to the Nigerian food industry average and Nigerian market average of 10.9x and 7.7x respectively.

On the good side, the food and beverage company has short-term assets of N20.5 billion which exceed its short-term liabilities of N14.6 billion. Its short-term assets also exceed its long-term liabilities of about N5.9 billion.

About Company

Located in Lagos, Nigeria, Cadbury manufactures and sells fast-moving consumer goods in Nigeria. It operates through three different segments: Refreshment Beverages, Confectionery, and Intermediate Cocoa Products. The first segment is responsible for manufacturing refreshment beverages. The second segment manufactures and sells confectionery products, while the Intermediate Cocoa Products segment manufactures and sells products like cocoa powder and butter, cocoa liquor, and cake. 

Incorporated in 1965, the company generates about $6.3 million in sales annually and operates under Cadbury Schweppes Overseas Limited.

Cadbury Nigeria sweets company is owned by Mondelez International brand and Mondelez is listed on the United States stock exchange. If you want to make money on the Nigeria Stock Exchange then you should possibly invest in Mondelez stock (MDLZ).