Cadbury profit dips 11% in 2021 on rising sales cost
Cadbury Nigeria Plc, a listed food and beverage maker on the Nigerian exchange group has recorded an 11 percent decline in full-year 2021, thanks to higher sales cost, an analysis by BusinessDay reveals.
The food maker’s profit declined to N830 million in 2021 compared to N931 million in the full-year period of 2020, according to its 2021 financial statement released on Jan 25.
The company sold more beverages and confectionery as revenue grew 19.4 percent to N42.3 billion in 2021 from N35.4 billion in the same period of 2020.
The domestic sales jumped 24.8 percent to N40.2 billion while export sales declined 32 percent to N2.1 billion in the periods under review.
However, the sales cost grew 21.3 percent to N35.8 billion from N29.5 billion in the full-year period of 2020.
The company has been battling with rising sales costs which was responsible for its half-year net loss of N516 million in 2021. However, it was able to bounce back with a profit of N2 billion in the third quarter of the year.
Despite the rise in cost, gross profit grew 12 percent to N5.8 billion compared to N5.8 billion in 2021.
Net finance income jumped 381 percent to N607.4 million compared to N126.2 million in the full year period of 2020.
The company’s finance cost stood at N248 million in the full year period of 2021 compared to 2020 when it had no finance cost.
The consumer goods firm saw its selling and distribution expenses rise 9.4 percent to N5 billion in 2021 compared to N4.57 billion in 2020.
Administrative expenses dropped to N908 million from N1.16 billion in the periods under review.
Other income plunged 77 percent to N24 million in 2021 compared to N108 million in 2020.
Cadbury’s profit before tax hit N1.18 billion in the 2021 full year period compared to N408 million in 2020.
Income tax expense plunged 32 percent to N355.9 million in 2021 from N523.7 million in full year 2020.
The company recorded no impairment on receivables compared to N12.8 million in the year 2020.
Earnings per share also dropped 12 percent to N44 per share from N50 per share in the same period of 2020.
Depreciation and Amortization declined 14 percent to N1.37 billion compared to N1.6 billion in the periods under review.
The food maker saw its Value Added Tax (VAT) payment rise 37 percent to N1.7 billion in 2021 from N1.24 billion in the full year period of 2020.
The firm spent N8.1 billion on inventories in 2021, a 55 percent increase compared to N5.2 billion in 2021. Inventories include raw & packaging materials, products in process, finished products, spare parts and goods in transit.
Trade and other receivables grew 3.89 percent to N4 billion compared to N3.85 billion in the periods under review.
Cadbury Nigeria Plc manufactures and markets sugar confectionery, food drinks, and food products. The company produces intermediate products, such as cocoa butter, liquor, cake and powder. It exports cocoa butter, cake and liquor to international customers, and cocoa powder locally.