Cadbury Nigeria Reports N516m Loss despite 85% growth in confectionary sales

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Cadbury Nigeria Plc (Cadbury) grew its revenue by 30% YoY to N9.60bn in Q2 2021 from N7.36bn in Q2 2020 owing to an increase in volume sales induced by the resumption of economic activities.

However, gross profit declined by 32% YoY to N688mn in Q2 2021 (Q2 2020: N1.02bn) resulting from a 40% YoY rise in the cost of sales.

In Q2 2021, loss before tax stood at N516m (down by 167.3%) while loss after tax stood at N516m (drops I96.2%).

Product Segments Breakdown in Q2 2021

  • Increase in refreshment beverages by 30% YoY to N6.53bn in Q2 2021.
  • Confectionary sales rose by 85% YoY to N2.71bn in Q2 2021.
  • Intermediate cocoa sales declined by 59% to N358mn in Q2 2021.

Overall, the increased sales of refreshment beverages which constituted 68% of total revenue underpinned the growth in revenue.

Cadbury Nigeria - Lockdown Easing Drive Q3’2020 Earnings Recovery

The Company’s brands fall into three principal categories, namely:

  • Refreshment beverages – This includes the manufacturing and sale of Bournvita and
    3-in-1 Hot Chocolate.
  • Confectionery products – This includes the manufacturing and sale of Tom Tom, Buttermint and Clorets.
  • Intermediate cocoa – This includes the manufacturing and sale of cocoa powder, cocoa butter, cocoa liquor and cocoa cake.
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Cadbury Nigeria’s operating expense rose by 37% YoY to N1.63bn in Q2 2021. As a result of the rise in operating expense, operating loss worsened to N933mn in Q2 2021 (Q2 2020: N168mn).

Loss before tax printed at N861mn in Q2 2021 from a loss of N146mn in Q2 2020. There was no tax expense in Q2 2021, thus loss after tax remained N861mn (Q2 2020: N102mn loss).

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