Cadbury Nigeria Soars by 21% in Anticipation of Q1 Earnings
Fast-moving consumer goods company Cadbury Nigeria Plc’s market value soared by about 21% in the equities segment of the Nigerian Exchange (NGX) ahead of its first quarter of 2025 earnings release.
The consumer goods company’s share price rose from N22 at the beginning of the week to close at N26.6 on Friday after more than 1.342 million units valued at N35.302 million exchanged hands in the local bourse.
This pushed the consumer goods producer market value to N60.655 billion, still trading at a significant discount to its 52-week high in the Nigerian market. Based on past activity, the market and investors are anticipating the release of Cadbury Nigeria Plc’s first quarter earnings release in May 2025. The company released its Q1-2024 unaudited financial statement in May last year.
Cadbury Nigeria Plc reported a 60.73% revenue growth, settling at ₦129.19 billion in 2024, driven by both domestic and export sales. The company also recorded a gross profit of ₦17.49 billion but ended with a loss after tax of ₦10.42 billion from ₦19.08 billion in 2023.
This happened as its costs of sales rose faster than revenue. Details from its financials showed that the cost of sales rose by 77.18%, increasing from ₦63.04 billion to ₦111.69 billion in 2024. This sharp rise was driven by inflationary pressures that significantly escalated production costs, reflecting higher prices of raw materials and other inputs.
The company’s finance income settled at ₦434 million in FY 2024, reflecting a significant 80.79% decline, primarily due to a sharp drop in interest income from bank deposits, which fell from ₦2.26 billion in 2023 to ₦434 million in 2024.
In contrast, finance costs outweighed finance income. Finance costs recorded a 43.24% year-on-year drop, decreasing from ₦38.29 billion in the previous year to ₦21.74 billion in FY 2024.
Thus, bringing the net finance costs of ₦21.30 billion in 2024 from ₦36.02 billion in 2023, signifying a 40.88% year-on-year decline. This decline was largely driven by a substantial reduction in exchange differences (realized and unrealized), which dropped from ₦30.07 billion to ₦14.58 billion, along with lower interest expenses on borrowings.
The company reported a loss before tax of ₦14.89 billion in 2024 from a pretax loss of ₦ 28.15 billion in 2023, signifying a 47.10% year-on-year moderation.
The loss after tax was attributed to higher operating costs, which was largely driven by a 51.86% increase in administrative expenses. As a result, the loss after tax stood at ₦10.42 billion in FY’2024, down from ₦19.08 billion in 2023, a substantial decline of 45.48% year on year. #Cadbury Nigeria Soars by 21% in Anticipation of Q1 Earnings BUA Cement Bolsters Earnings; Profit Rises by 351% in Q1
