Cadbury Nigeria Plc reports a 48 percent drop in profit for the fiscal year 2021

Cadbury Nig Plc, a food, sweets, and drink company headquartered in Lagos, Nigeria, and traded on the Nigerian Stock Exchange has announced its FY 2021 results, which show a profit of N449.71 million, down 48 percent from the previous year despite revenue growth of 19.67 percent.

Prices of products and services continued to rise throughout the year, resulting in inflationary pressures that impacted both consumers and producers. Similarly, as the cost of raw materials and freight climbed, producers faced a large increase in their manufacturing expenses.

As a result, while the company gained sales due to double-digit food inflation, profit was severely hampered by production expenses, which grew by a staggering 21% year over year.

The key aspect of the outcome

A simple examination of the figures reveals that the company's profit was boosted by strong domestic sales, one of the company's reportable categories, while export sales fell. In the full year, both segments generated revenue of N42.37 billion, compared to N35.41 billion in the same period in 2020.

Domestic sales increased by 25% year on year, generating a total of N40.27 billion in revenue. While export sales brought in N2.10 billion, a 32 percent decrease year over year.

Furthermore, the company profited from interest revenue on bank deposits, earning N856 million throughout the financial year.

Cadbury Nig Plc's full-year revenue performance was hampered by high raw and packaging material prices, which had a trickle-down effect on profit.

Double-digit food inflation, border closures, FX market volatility, and rising foreign commodity prices all impacted the company's income. During this time, however, advertising and sales promotion expenses climbed by about 10%.

A closer examination of the financial figures revealed that the company's long-term debts were N6.60 billion. Cadbury's total assets have increased by 0.64 percent to N43.69 billion, while net assets have increased by 0.64 percent to N13.64 billion.

Cadbury Nigeria Plc's earnings per share (EPS) for the period were N24.00, down 52% from N50.00 in FY 2020.

The company's stock last traded at N9.00 per share, up 2.27 percent year to date.