Cadbury Nigeria Plc 2016 Financial Summary

Principal activities 

Cadbury Nigeria Plc was incorporated in Nigeria on 9 January 1965 as a company limited by shares. It became a publicly listed Company with its shares traded locally on the Nigerian Stock Exchange in 1976. The Company’s registered address is Lateef Jakande Road, Ikeja. The Company is principally engaged in the manufacture and sale of branded fast moving consumer goods mostly to the Nigerian market, but also for exports in West Africa. The Company also produces a wide range of intermediate products such as cocoa butter, liquor, cake and powder. The cocoa butter, cake and liquor are exported to a wide range of international customers while the cocoa powder is consumed locally.


The Product range

The Company’s brands fall into three principal categories, namely Refreshment Beverages, Confectionery and Intermediate Cocoa Products. CADBURY BOURNVITA, CADBURY 3-in-1 HOT CHOCOLATE, are the main brands in the refreshment beverage category, while TOMTOM CLASSIC, TOMTOM HONEY LEMON, TOMTOM STRAWBERRY, BUTTERMINT, CLORETS AND TRIDENT are the main brands in the confectionery stable. COCOA POWDER, COCOA CAKE AND COCOA BUTTER are the main products for the Intermediate Cocoa Products.

Shareholding

Cadbury Nigeria Plc is owned 74.97% (2015: 74.97%) by Cadbury Schweppes Overseas Limited (“CSOL”), a company incorporated in the United Kingdom, and 25.03% (2015: 25.03%) by a highly diversified spread of Nigerian individual and institutional shareholders. CSOL is owned by Mondelēz International. Other than CSOL, no other shareholder held more than 5% of the issued share capital of the Company as at 31 December 2016 (2015: Nil)

12 Months Report CADBURY NIGERIA PLC
	2016 N'000	2015 N'000	change	Year End
Revenue	29,979,410	27,825,194	8%	December
Profit before taxation	6,860,403	8,930,227	-23%
Profit for the period	-562,870	1,577,412	-136%
Issued Shares (Units)	1,878,201,962	1,878,201,962
Basic Earnings Per Shares (Kobo)	-16.00	61.00	-126%
Last total dividend paid (Kobo)	0.00	65.00	-100%

Quarter on Quarter Performance

Revenue N'000                                                   PAT N'000

Q1: #7,121,164                                                  Q1: #672,822

Q2: #6,795,952                                                  Q2: (#525,675)

Q3: #7,408,425                                                  Q3: (#989,303)

Q4: #8,653,869                                                  Q4: #279,286

Cadbury maintained an average of #7,494,852,500 in terms of revenue for the year 2016. in the same vein maintained an average of (#140,717,500) in the course of year 2016. Revenue was relatively stable but the cost of sales impacted the bottom line negatively. 

The two major items that actually caught my attention on the balance sheet are the Inventory level and cost of sales. Inventory level increased by 159.29% against the same period last year, this explains the reason for the dismal revenue performance and other cost like holding, insurance, lightning etc are being incurred on the unsold stocks. On the other hand, cost of sales increased by 22.36% against 2015 and at the same time it was 77% of revenue in 2016 as against 67% of Revenue in 2015 which implied that the revenue for 2016 was hard sell.

Cadbury must SELL! SELL!! and SELL!!! to remain competitive. The only way to reverse the trend. Aside selling their baskets of products is not that convincing, because they are not actually leaders in their categories.         

The Market had actually anticipated this down turn the reason for its current pricing on the Nigerian Stock Exchange.

Cadbury, oh my Cadbury, a falling Angel of the Nigeria Stock Exchange.