Cadbury may go on offer following N27.63bn full year loss

The shares of Cadbury Nigeria Plc may be more on the sell-side of the Nigerian Bourse after the consumer goods company berthed the market with disappointing N27.63billion loss for full year 2023. This loss represents a decline by 2,228percent from pre-tax profit of N1.298billion in 2022.

At N22.95 per share as at Friday January 26, Cadbury Nigeria share price has underperformed the market (NGX ASI +36.95percent), rising this year by only 20.8percent.

Read also: Cadbury moves to convert $7.7m debt to equity

Though Cadbury Nigeria Plc released its unaudited financial statements for the year ended December 31, 2023, showing revenue of N80.378billion in 2023, as against N55.212billion in full year 2022, up by 46 percent. Gross profit was also up by 130 percent year-on-year (YoY), to N17.790billion from N7.722billion in 2022.

Cadbury Nigeria Plc is owned 74.97percent (2022: 74.97percent) by Cadbury Schweppes Overseas Limited (CSOL), incorporated in the United Kingdom while CSOL is owned by Mondelez International and 25.03percent (2022: 25.03percent) by a highly diversified spread of individual and institutional shareholders.

As at December 31, 2023, Cadbury Nigeria Plc is complaint with the Free Float requirement for the Main Board of the Nigerian Stock Exchange, with free float of 24.99percent (2022: 24.99percent). Cadbury Nigeria Plc reported basic loss per share of 1,471.23kobo in 2023 as against earnings per share of 31.05kobo in 2022, a decrease by 4,839percent.

Read also: Cadbury to issue additional share capital

The Company’s brands fall into four principal categories, namely refreshment beverages, confectionery, biscuit and intermediate cocoa products.

Cadbury Bournvita and 3-in-1 Hot Chocolate are the refreshment beverages, TomTom, Candy Caramel, Candy Coffee, Buttermint and Clorets gum are the confectionery products, Bournvita Biscuit is the biscuit category while Cocoa Butter is a key product in the intermediate cocoa category.