Cadbury Nigeria’s Tax Credit Reduces Loss by 33% to N9.7bn

Cadbury Nigeria’s Tax Credit Reduces Loss by 33% to N9.7bn

Cadbury Nigeria Plc saw more than 33% year on year moderation in net loss due to a strong spike in revenue performance, which was supported by increase market prices of its goods.

In its unaudited financial statement submitted to the Nigerian Exchange, Cadbury Nigeria Plc reported that the cost profile accelerated faster than revenue generated from its business activities.

Its unaudited financials showed that net loss declined to N9.7 billion in the first half of 2024, from N14.539 billion in the comparable period in 2023, due to about N4.2 billion tax credit.

The results showed that the company reported an uptick in revenue, up by 44.64% to N51.44 billion from N35.61 billion in H1-2023.

The review of the company’s numbers showed that 88.92% out of its total revenue was driven by domestic sales, rising to N51.44 billion in from N35.61 billion in 2023.

Also, 11.08% of the total revenue was driven by export sales, which ticked higher to N5.70 billion in the period, up from N714.49 million.

The company’s cost of sales rose by 64.92% to N41.85 billion from N25.38 billion as inflation continue to have negative impacts on private sector players’ activities.

Gross profit declined by 6.28% year on year to N9.59 billion from N10.23 billion in the comparable period in 2023.  Operating expense increased by 11.50% to N4.64 billion from N4.16 billion, driven by growth in selling and distribution expenses and administrative expenses.

The company’s operating profit settled at N4.73 billion in the first half as price of goods skyrocketed, from N6.07 billion amidst macroeconomic bumps and tightening consumers spending.

According to the results, net finance cost ticked up to N18.61 billion, largely driven by N14.97 billion in realized FX loss in the period. Naira devaluation has become nightmare for the consumer goods companies in Nigeria, including Cadbury Nigeria Plc.

The company recorded N13.88 billion as loss before tax, which is a decline when compared with N14.54 billion loss before tax reported in the comparable period in 2023.

However, analysts noted that an income tax credit of N4.16 billion was able to bring the company’s net loss to N9.72 billion in the first half of 2024 as against the net loss of N14.54 billion 12 months earlier.  ABCON Urges CBN to Extend BDC License Deadline, Review Requirements