Cadbury posts N251m H1 loss

Cadbury Nigeria Plc has swung to loss position with a loss after tax of N250.716 million for the half-year ended June 30 2015. Key extracts of the accounts statement for the period at the Nigerian Stock Exchange (NSE) showed drop in growths in key performance indices, damping strong performance outlook of one of the leading consumer goods companies in the country.

The food and confectionery maker recorded a loss after tax of tax of N250.716 million in the first half of the year from a profit position of N1.263 billion in 2014, accounting for a percentage change of 120 per cent.

Similarly, the Cadbury posted a loss before tax of N250.716 million during the period under review from a profit of N1.792 billion reported in the same period of 2014, representing 114 percentage change. Gross earnings also dropped to N14.137 billion during the second quarter of the year, as against N15.321 billion a year ago, accounting for a drop of 8 per cent.

Cadbury posted a firstquarter loss of N303 million for the first quarter ended March 31, 2015 compared with N1.15 billion profit year ago. Revenues at the food and confectionery maker declined 3 per cent during the period to N6.73 billion.

Cadbury had reported 80 per cent drop in pretax profit for the 2014 financial year as top-line and bottom-line earnings showed considerable decline with gross earnings equally down by 15 per cent. Profit before tax fell by 80 per cent to N1.467 billion from N7.421 billion recorded in 2013, while profit after tax also decreased by 75 per cent to N1.512 billion. This is as against N6.023 billion recorded in 2013. Revenue was also down by 15 per cent during the year-end from N35.760 billion in 2013 to N30.518 billion in 2014.

The company’s dwindling fortune began in the first quarter of 2014 as earnings were compressed by weak sales leading to a dip in Pretax profit by 31.31 per cent relative to the reduction in gross profit to N1.15 billion in March 2014 from N1.68 billion in March 2013.

This was principally due to the decline of 43.64 per cent in net finance income to N274.59million in March 2014 from N487.23 million in March 2013 according to market watchers.

T he decline in the first quarter, which signaled signs of worry to investors were sustained during the second quarter as the company posted a 50 per cent decline in post tax profits in the half year ended June 30, 2014.