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Cadbury repositions, posts 10 per cent revenue growth


Cadbury Nigeria Plc has recorded 10 per cent growth in revenue from N29.979 billion in 2016 to N33.079 billion for the financial year ended December 31, 2017.

Specifically, the company recorded a profit after tax of N299.998 million as against loss after tax of N296.403 million posted during the comparable period of 2016, representing a growth of 200 per cent.

In a filing with the Nigerian Stock Exchange (NSE), the fast consumer moving goods also reported a profit before tax of N350.317 million in 2017 against pretax loss of N562.871million posted in 2016, accounting for an increase of 163 per cent.


Its revenue grew by 10 per cent to N33.079 billion in 2017 from N29.979 billion in 2016.
Cadbury Q3 2017 showed revenue growth of 9.3 per cent y/y and PAT of N702 million, from a loss reported in Q2. The reported profit was Cadbury’s single-quarter largest since Q4-15, thanks to significant expansion of gross margin.

According to analysts at Cordros Capital, “compared to our estimate, revenue was ahead by 2 per cent, while PAT beat by 78 per cent following deviations on gross margin (-204 bps) and opex (-221 bps) lines.

“While top-line continued to grow, the slower growth pace compared to the last three quarters, and notwithstanding the still low base prices of Q3-16, suggest that sales volume may have been very low y/y. That said, revenue has grown 14.3 per cent y/y in nine months, with Non-Nigerian sales up 25 per cent.

“Gross margin of 30 per cent was reported, as the technical fees (included in cost of sales) that significantly pressured margin in Q2 appears to have been fully settled. We note also the positive feed-through from both the continued stable exchange rate and softer cocoa prices (-6.83 per cent Ytd and -4.82 per cent compared to end-March in the international market).

They noted that although there was no finance charge in Q3-16, the N60 million reported in the review period was significantly lower than Q2’s N212 million (including FX loss of N105 million) which adversely impacted earnings during the period. Bank overdraft – which Cadbury has resorted to in recent quarters as a result of the devaluation impact on working capital – stood at N2.7 billion as at September ending, from N2.3 billion in June.

“Overall, Cadbury’s strong profit in Q3, following a negative surprise in Q2, leaves post tax loss after nine months at N64 million, from N766 million in H1. Compared to other quarters, Cadbury’s results have been more stable in Q4. We look for the same this year, suggesting – given a stronger than expected Q3 – the company’s earnings will likely close the year ahead of our previous estimate,” they said.

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