2021 Audited Results: Cadbury Nigeria Reports 52% Profit Dip, Despite Revenue Growth

Directors of food beverages and confectioneries maker- Cadbury Nigeria, on Thursday presented its audited numbers showing that despite a 20% growth in its revenue for the full-year ended December 31, 2021, profit after tax slipped by a significant 52%, following a N648.203m tax expense, compared to previous year’s tax credit of N523.762m, which left net profit at N449.712m, down from N931.827m.

That notwithstanding, the directors have proposed a total dividend of N338m, or 18 kobo per share, from N912m, which translated to 49 kobo in the prior year, from earnings per share of 23.94 kobo, compared to the 49.61 kobo of the previous.

According to the details of the results filed with the NGX Limited, revenue grew from N35.407bn to N42.372bn; just as cost of sales from N29.508bn to N35.894bn, with raw materials and packaging materials cost growing from N18.206bn to N27.054bn; and energy and utilities dropped to N1.487bn from N2.03bn; resulting in gross profit of N6.477bn, up from N5.899bn.

Other income dropped significantly from N108.041m to N24.073m, resulting from the fall in gains on disposal of property, plant and equipment to just N0.42m from N67.656m; which could not be mitigated sufficiently by the growth in insurance claims received to N23.602m from N1.808m. The situation was further worsened by the drop in income from the sale of by-products to N0.53m, compared to N38.577m in the comparative period of 2020. Selling and distribution expenses rose to N5.06bn from N4.577bn; while administrative expenses fell to N949.669m, from N1.16bn; leaving operating profit at N491.468m, a significant improvement from the previous N281.824m.

Finance income also soared to N856.025m from N127.442m; just as finance cost from N1.201m to N249.576m, resulting in net finance income of N606.449m, up from N408.065m; which brought profit before tax to N1.097bn from N408.065m.