Cadbury, in its unaudited half-year financial books, recorded an uptick in revenue by 50 percent on the back of refreshment beverages, findings by BusinessDay showed.
The consumer goods company saw its revenue hit N27.8 billion in half-year 2022, the highest in seven years from N18.5 billion in half-year 2021.
According to a CSL Research report, the refreshment beverages category was the key contributor to the revenue growth as it jumped by 64 percent to N20.07 billion in H1 2022 even from N12.21 billion in H1 2021 and contributed 72 percent of the company’s revenue.”
The sale of confectionary rose to N7.2 billion in June 2022, a 29 percent uptick from N5.65 billion in June 2021.
However, revenue obtained from Intermediate cocoa products shrank marginally by 8 percent to N613 million from N665 million in June 2021.
Cadbury’s total equity is the value left in the company after subtracting total liabilities from total assets reached N15 billion, up 18 percent from N12.7 billion in the same period last year.
Cadbury recorded a profit of N800.2 million in June 2022 after a loss of N861.3 million in the same period of last year.
The CSL Research report noted, “while we are yet to confirm any further price adjustments by the company in 2022, we believe the revenue growth was driven by a mix of volume and price increases as the management alluded to a price increase in 2021, which we believe was done in the H2.
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“We believe that the recent increase in prices supported revenue growth, keeping it ahead of growth in the cost of sales, as the management had earlier noted that their cost of doing business has increased significantly, mainly on the back of FX illiquidity,” the report noted.
Selling and distribution expenses increased to N1.42 billion, a 3 percent jump from N1.37 billion in the half-year of 2021.
Cadbury sales within Nigeria contributed 97 percent(N26.9 billion) of the total revenue in half-year 2022 while export sales contributed just 3 percent (N893.8 million).
The company sales in Nigeria stood at N26.9 billion, 51 percent growth from N17.8 billion in June 2021.
Export sales which comprise sales outside Nigeria mainly in Africa and Europe jumped 24 percent to N898.8 million in June 2022 from N721.3 million.
Net cash generated from operating activities dropped 19 percent to N2.5 billion from N3.1 billion in the comparable period.
The company recorded negative cash used in investing activities at -921.7 million in June 2022 from -472.3 million in half-year 2021.
Net cash generated from financing activities, however, dipped 47.6 percent to N2.17 billion from N4.14 billion in the comparable period.
Total assets grew by 23 percent to N53.8 billion, coming from N43.7 billion.
Cadbury is a British multinational confectionery company fully owned by Mondelez International since 2010. It is the second largest confectionery brand in the world after Mars.
