Cadbury Nigeria Posts ₦2bn Pre-Tax Profit In Q4 2024

Cadbury Nigeria Plc has reported a pre-tax profit of ₦2 billion for the fourth quarter of 2024, marking a strong recovery from a ₦17.3 billion loss recorded in the same period in 2023.

This turnaround, disclosed in the company’s latest financial statement filed with the Nigerian Exchange (NGX) on January 27, 2025, also saw the firm cut its full-year pre-tax loss by 47 percent, reducing it from ₦28.1 billion in 2023 to ₦14.8 billion in 2024.

Revenue growth played a significant role in this recovery, with fourth-quarter revenue surging by 87.28 percent year-on-year to ₦39.6 billion, compared to ₦21.1 billion in the same quarter of the previous year. For the full year, Cadbury’s total revenue climbed to ₦129.1 billion, reflecting a 60.73 percent increase from ₦80.3 billion in 2023. Domestic sales accounted for 88.5 percent of this figure, highlighting the strength of the company’s local market.

Despite the impressive revenue gains, the company grappled with rising costs. The cost of sales soared by 77.18 percent to ₦111.6 billion, significantly outpacing revenue growth and limiting gross profit expansion to just 0.90 percent, reaching ₦17.4 billion. Additionally, other income took a sharp hit, plummeting from ₦72.5 million in 2023 to a loss of ₦1.5 billion in 2024. This decline was primarily due to a ₦757 million impairment provision for idle assets and additional expenses totalling ₦629.7 million.

On the expense side, Cadbury recorded a notable 15.21 percent reduction in selling and distribution costs, bringing them down from ₦7.3 billion to ₦6.2 billion. However, operating income dipped by 18.64 percent to ₦6.4 billion from ₦7.8 billion in the prior year.

One of the biggest financial improvements came from a 40.88 percent reduction in net finance costs, which fell to ₦21.3 billion from ₦36 billion. The bulk of these costs (68.5 percent) stemmed from foreign exchange losses, while interest on borrowings accounted for 28.2 percent.

The company’s total assets stood at ₦64.5 billion as of December 31, 2024, reflecting a modest 1.82 percent increase from ₦63.4 billion in 2023. Non-current assets grew from ₦23.1 billion to ₦25.6 billion, with property, plant, and equipment making up ₦16.7 billion of this figure. Meanwhile, current assets declined by 3.33 percent, dropping from ₦40.2 billion in 2023 to ₦38.9 billion in 2024.

Cadbury Nigeria’s strong fourth-quarter performance and efforts to rein in costs have positioned the company for a potential return to profitability. While challenges remain, including high production costs and exchange rate volatility, the company’s ability to significantly reduce its losses signals a more stable outlook for 2025.