NIGERIA— Cadbury Nigeria Plc, a renowned consumer goods firm, is facing significant setback as shareholders brace for a dividend-less year due to a staggering loss of N19.09 billion (US$14.7 Million) after tax for the financial year 2023.
According to the company’s annual report for the year ended December 2023, this dismal performance marks a drastic decline from the previous year’s profit of N583.11 million (US$ 453,000).
This comes despite a noteworthy 46% revenue surge to N80.38 billion (US$ 62.5 million) from N55.21 billion (US$ 42.8 million) in the preceding year.
In light of this adverse financial outcome, the company’s directors have refrained from recommending any dividends for the year, a sharp contrast to the N751.28 million (US$0.6 million) final dividend payout in 2022.
Cadbury Nigeria’s revenue stream primarily stems from refreshment beverages, including Cadbury Bournvita and 3-in-1 Hot Chocolate, which collectively amass N52.2 billion (US$ 42.5 million) in sales for 2023.
Confectionery products such as TomTom, Candy Caramel, Candy Coffee, Buttermint, and Clorets gum follow suit, contributing N25.6 billion (US$ 20.2 million) in revenue.
Amidst the challenging financial conditions characterized by a negative equity of N6.5 billion (US$ 5.5 million) in 2023, the company is looking to take proactive measures through debt structuring.
This will include efforts to convert a US$7.7 million debt owed to the principal shareholder, Cadbury Schweppes Overseas Limited, into equity – the move will augment Cadbury Schweppes Overseas Limited’s shareholding in Cadbury Nigeria to 79.39%.
Cadbury Nigeria was founded in 1965 as a company limited by shares, before commencing trading on the Nigerian Stock Exchange in 1976.
While its core activities revolve around manufacturing and selling branded fast-moving consumer goods primarily in the Nigerian and West African markets, the company also engages in producing intermediate cocoa products at its cocoa processing factory in Ondo State – these products include cocoa butter, liquor, cake, and powder
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