Cadbury Nigeria Plc has made a strong financial recovery, reporting a pre-tax profit of N2 billion in Q4 2024, a 111.73% turnaround from the N17.3 billion pre-tax loss recorded in the same quarter of 2023. This recovery has significantly reduced the company’s full-year pre-tax loss from N28.1 billion in 2023 to N14.8 billion in 2024, representing a 47.10% improvement.
The company’s financial statement, released on January 27, 2025, on the Nigerian Exchange (NGX), also highlighted robust revenue growth. Q4 2024 revenue surged by 87.28% year-on-year, reaching N39.6 billion compared to N21.1 billion in Q4 2023. For the entire fiscal year, revenue increased 60.73% to N129.1 billion, up from N80.3 billion in FY 2023, with domestic sales accounting for 88.5% of total revenue.
Key Financial Highlights (FY 2024 vs FY 2023)
•Revenue: N129.1 billion (+60.73% YoY)
•Cost of Sales: N111.6 billion (+77.18% YoY)
•Gross Profit: N17.4 billion (+0.90% YoY)
•Other Income: N1.5 billion (-2,226.56% YoY)
•Selling & Distribution Expenses: N6.2 billion (-15.21% YoY)
•Operating Income: N6.4 billion (-18.64% YoY)
•Net Finance Cost: N21.3 billion (-40.88% YoY)
•Pre-tax Loss: N14.8 billion (-47.10% YoY)
•Total Assets: N64.5 billion (+1.82% YoY)
Revenue Growth vs Cost Challenges
While Cadbury Nigeria recorded a massive increase in revenue, the cost of sales surged by 77.18% to N111.6 billion, limiting gross profit growth to just 0.90%.
Additionally, other income declined sharply, shifting from N72.5 million in FY 2023 to a loss of N1.5 billion in FY 2024, largely due to:
•N757 million impairment provisions for idle assets.
•Additional expenses of N629.7 million.
On a positive note, selling and distribution expenses decreased by 15.21%, dropping from N7.3 billion in 2023 to N6.2 billion in 2024, reflecting cost-cutting efforts and operational efficiency improvements.
Financial Discipline Drives Recovery
Despite cost pressures, Cadbury Nigeria managed to reduce its net finance costs by 40.88%, cutting them from N36 billion in 2023 to N21.3 billion in 2024.
•Exchange rate differences accounted for 68.5% of finance costs.
•Interest expenses on borrowings made up 28.2%.
The company’s pre-tax loss dropped by nearly half, from N28.1 billion to N14.8 billion, reflecting better cost management and operational improvements.
Q4 2024: A Major Turnaround Moment
The fourth quarter marked a major financial recovery as Cadbury returned to profitability with a pre-tax profit of N2 billion, compared to the N17.3 billion loss in Q4 2023.
Strengthening the Asset Base
Cadbury’s total assets increased by 1.82% to N64.5 billion as of December 31, 2024 (from N63.4 billion in 2023).
•Non-current assets rose from N23.1 billion to N25.6 billion, with property, plant, and equipment valued at N16.7 billion.
•Current assets declined by 3.33%, from N40.2 billion in 2023 to N38.9 billion in 2024.
Outlook: A Path to Sustained Growth?
Cadbury Nigeria’s return to quarterly profitability and its 47% reduction in full-year losses signal a positive trajectory for the company. However, challenges remain, including high production costs, exchange rate volatility, and economic pressures affecting consumer spending.
If the company sustains its cost-cutting measures, improves operational efficiencies, and continues growing domestic sales, it could be on track to fully return to profitability in 2025.
With a strong brand presence and increased local market penetration, Cadbury Nigeria remains a key player in Nigeria’s fast-moving consumer goods (FMCG) sector, aiming for long-term profitability and market expansion.
