The board of food beverages and confectioneries giant- Cadbury Nigeria, on Wednesday reported a loss before and after tax in the half-year ended June 30, 2017, following the N3.214bn or 32.58% rise in cost of sales, which combined with a N273.674m finance cost, a sub-head that did not exist in the corresponding period of 2016.
According to the result presented to the Nigerian Stock Exchange (NSE), revenue from sales jumped to N16.264bn, out of which domestic sales accounted for N14.926bn, compared to the previous N13.569bn from N13.917bn; while export sales amounted to N1.338bn, from N1.347bn in the half year of 2016. Cost of sales rose to N13.081bn, including N581.413m paid for trade mark licences agreement and technical know-how and management services agreement in June 2017 for brands like Bournvita, TomTom, Cadbury 3-in-1 hot chocolate and Buttermint; from N9.866bn, resulting in gross profit of N3.183bn, a decline when compared to the previous N4.05bn.
Other income fell to N18.961m from sale of by-products, down from N40.11m; selling and distribution expenses dropped slightly to N2.708bn from N2.901bn; just as administrative expenses was flat at N1.052bn as against the N1.056bn in the preceding half year.
Operating loss therefore came to N558.729m from a profit of N639.495m.
Finance income fell to N66.014m, being interest income on bank deposits, from the previous N83.678m. Finance cost stood at N273.674m, arising from the N151.151m bank interest charges, N17.994m bank charges and N104.529m foreign exchange loss, all of which did not exist in the prior half-year; leaving net finance cost of N207.66m, as against the N83.678m previous net finance income.
Loss before and after tax stood at N766.389m, as against the previous half year’s N216.393m profit before tax, compared to the net profit of N147.147m, translating to loss per share of 41 kobo, from the previous eight kobo earning.
