Cadbury Nigeria reports 51% growth in revenue, after-tax loss of US$71.4M

NIGERIA – Cadbury Nigeria, the Nigerian subsidiary of Mondelez International, has recorded an after-tax loss of N11.9 billion (US$71.4m) in the first nine months of 2024 despite an increase in revenue.

The loss was a result of huge cost of operations. The company’s cost of sales also increased to N74.8 billion from N42.9 billion while net finance cost grew to N23.2 billion from N19.9 billion.

The Bournvita maker reported a 51% growth in revenue in the period under review to N89.5 billion from N59.2 billion in 2023.

In the same perio, the company recorded N53.35 billion in revenues from its refreshment beverage segment and N25.71 billion from confectionary sales. Revenues from the company’s intermediate cocoa products rose by more than 200% from N3.2 billion to N10.45 billion in the third quarter of the year.

Despite a significant increase in revenues, the problems that affected the company in 2023 have not abated.

The company’s Board of Directors had announced on January 28, 2024, that they negotiated a US$20 million debt forgiveness from CSOL on the $40 million received on January 15, 2024.

They explained that the debt forgiveness was necessary due to the sharp devaluation of the Nigerian Naira, which fell from N911.68 in December 2023 to over N1,400 in January 2024 against the US Dollar.

In the first half of 2024, Cadbury Nigeria’s after-tax loss reduced resulted from income tax credit and revenue growth during the period.

The firm’s after-tax loss stood at N9.72 billion from N14.5 billion during the period. Cadbury Nigeria recorded an income tax credit of N4.16 billion in the first half of 2024. The firm’s revenue increased by 44 percent to N51.4 billion from N35.6 billion.

Cadbury Nigeria’s revenue was driven by domestic sales which contributed the most of N45.74 billion (89 percent) while export sales contributed N5.7 billion (11 percent) to the total revenue in the first half of 2024.

In July 22, 2024, Ogaga Ologe, the Finance Director of Cadbury Nigeria exited without disclosure of reasons.

“Ologe’s replacement will be announced in due course. The Board of Cadbury Nigeria Plc immensely appreciates Ologe’s hard work and committed service to the Company and wishes him success,” the company said.

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