Cadbury Nigeria Plc last Friday joined the early filers on the Nigerian Stock Exchange (NSE) with the release of its unaudited financial statements for the period ended June 30, 2019. With 11 percent increase in revenue at half year, Cadbury is set for a good outing at the end of the year. Gross revenue mainly from domestic sales rose from N17.55 billion in June 2018 to N19.45 billion this year’s June. Domestic sales accounted for 89 percent or N17.35 billion of the revenue made in the first six months of this year, while export sales contributed 11 percent or N2.10 billion.
Traditionally, Cadbury’s revenue comes from three sources which are refreshment beverages, confectionary and intermediate cocoa products. In the period that just ended, refreshment beverages fetched the company N12.32 billion only in Nigeria with no sales overseas, representing 63 percent of the overall half year sales.
Confectionary products generated N5.09 billion or 26 percent of the total sales during the reference period. But what cannot be glossed over is the fact that 98 percent of this revenue was made within Nigeria, while the remaining 2 percent which amounted to N120,531 was from exports.
Further, cocoa products accounted for N2.04 billion or 11 percent of the half year revenue. It is equally important to know that 97 percent or N1.98 billion was from export sales while the remaining 3 percent was generated within Nigeria.
This compares with N14.86 billion the company realised from domestic sales as at June 2018 when revenue from Nigeria accounted for 85 percent while export sales contributed 15 percent or N2.7 billion. In effect, while domestic sales rose by 19 percent, export sales declined by 22 percent at half year.
The management of Cadbury was able to reduce the cost of goods sold relative to revenue as the cost of sales recorded just a marginal increase of 4 percent from N14.74 billion in June 2018 to N15.31 billion in June 2019. With that, it cost the first 79 kobo in the first half of 2019 to earn 100 kobo revenue as against 84 kobo to 100 kobo in corresponding period in 2018.
Operating profit leapt to N888.78 million by June 2019 in contrast to operating loss of N105.63 million in corresponding period in 2018. An inflow of N63.28 million through finance income ensured the profit before income tax rose to N957.06 million in June 2019 compared with a loss before income tax of N423.77 million same period last year.
Profit after tax was N669.94 million as at June 2019 representing a significant improvement over a loss after tax of N423.77 million in corresponding period in 2018.
Cadbury Nigeria’s share price closed last week Friday on the Nigerian bourse at N10.80 per share and that amounted to 8 percent increase year to date. Its 52-week low and high are N9 and N12.40 per share respectively.
TELIAT SULE
