Cadbury Nigeria, a prominent player in the fast moving consumer goods sector has reported a 43 percent increase in revenue to N23.70 billion in the first quarter of 2024 from N16.56 billion in the same period of 2023.
According to BusinessDay analysis, this was fueled by an increase in its domestic and export sales.
Here are four highlights which give insights into Cadbury’s performance, comparing the company’s first quarter 2024 results with the past year as reported on Nigerian Exchange Group (NGX).
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Profit after tax
Cadbury reported a decrease in its profit after tax for the first quarter of 2024 .
Data gleaned from Cadbury’s financial results available on the NGX showed the firm’s profit after tax decreased by 0ver 300 percent to negative N7.32 billion in the first quarter of 2024 from N3.45 billion recorded in the same period of last year.
“The company’s net finance expense of N13.22bn in Q1 2024, largely driven by N13.39bn in FX loss, completely eroded Cadbury’s chance of profitability in the period,” CSL Stockbrokers said in its report.
This dip in profit can be attributed to an upswing in income tax and finance cost. The company experienced a decline of 70.2 percent in finance income, to N170.98 million in the first quarter of 2023, compared to N 574.05 million recorded in the corresponding period of 2023.
Also the company’s finance cost increased by 7750 percent This surge was evident in Cadbury’s interest expense on leases, borrowings, fees and charges, and foreign exchange loss which soared to N15.23 billion in the first quarter of 2024 from N194.30 million in the same period of 2023.
Total equity
The total equity for the first quarter of 2023 moved from a negative of N6.51 billion in the first quarter of 2023 to N5.66 billion in the same quarter of 2024. This was propelled by more than a two fold increase in retained loss to N25.74 billion in 2024 from N11.36 billion in 2023.
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Total asset
Total assets provide a snapshot of a company’s financial health and its overall value. Investors, creditors, and other stakeholders use total assets as a key indicator of the company’s financial strength and stability. I
The company’s total assets increased by nine percent to N69.30 billion in the first quarter of 2024 from N63.43 billion in the same period of 2023.
This was driven by a 23 percent increase in inventories, 1.6 percent increase in trade and other receivables, and a 188 percent growth in prepayments.
Its cash and cash equivalent also increased to N21.57 billion in this period from N20.45 billion in the corresponding period of 2023.
Total liabilities
Total liabilities serve little purpose as a metric on its own, when used with other figures such as total equity or asset it can be useful.
when total assets exceed total liabilities the result is a positive net equity or net worth.
Cadbury recorded total liabilities which stood at N63.64 billion from N69.94 billion in the period reviewed.
The decline in its liabilities is majorly driven by a decrease in its borrowings to N29.11 billion in the first quarter of 2024 from N43.21 billion in the same period of 2023.
