Cadbury Nigeria Sees 20% Sales Growth, Profit Down
Cadbury Nigeria Plc recorded a 20% year on year increase in sales, according to an unaudited financial statement filed with the regulator – the Nigerian Exchange. But the company’s profit for the year tumbled 11% as higher costs of sales eclipsed top-line growth.
Detail from the unaudited report shows that consumers goods company total revenue generated in 2022 hits N42.372 billion from N35.407 billion in the corresponding period in 2020.
Despite a surge in sales in the period, a fast and furious rise in the cost of sales outpaced sales growth, causing 10% decline in gross profit before other operating expenses were met.
Cadbury Nigeria unaudited financial statement released to the Nigerian Exchange shows that the company’s costs of sales expanded 22% to N35.865 billion in 2021, from N29.508 billion in the comparable period in 2020.
In the period, the company’s selling and distribution expenses increased more than 10% to N5.043 billion from N4.577 billion spending during the pandemic as operational activities level improved.
Read: Cadbury: Analysts Downgrade Stock to Hold after Disappointing Earnings
Meanwhile, administrative expenses printed at N908.3 million cleared lower in the 12-month period when compared with 2020 when the company recorded N1.160 billion. Cadbury Nigeria recorded a 191% jump in pre-tax profit which printed at N1.186 billion, from N408 million 12-month earlier.
The consumer goods giant profit after tax for the year settled at N830.431 million, 11% below N931 million recorded in the comparable period in 2020. The company saw a massive drop in other income lines to N24.07 million as against N108.04 million generated from investing activities in 2021
Detail analysis later
