Cadbury records 136% decline, N562.87m loss before tax

Cadbury Nigeria Plc has reported a loss before tax of N562.87 million in its operations for the financial year ended December 31, 2016.
The audited results released on the Nigerian Stock Exchange (NSE), on Tuesday showed a decline of 136 per cent from a profit before tax of N1.58 billion in 2015
According to the report, profit after tax dropped by 126 per cent to from a loss of N296.4 million as against N1.15 billion in 2015.
However, the company announced a revenue growth of eight per cent to N29.98 billion in 2016 from N27.83 billion in the corresponding period of 2015. Cost of sale rose from N18.89 billion to N23.12 billion in 2016, making the company to close the period with gross profit of N6.86 billion, as against N8.93 billion in 2015.
Results from operating activities for the period declined by 152 per cent to N732.85 million from N1.42 billion in 2015, earnings per share declined from 61 kobo to 16 kobo, while the stock market capitalisation fell by 41 per cent to N18.78 billion from N31.93 billion in 2015.
Due to the losses incurred for the year, the board of directors were unable to declare dividend to the shareholders.
Stock market analysts noted that “We believe that Cadbury’s topline, like most other consumer names, continues to face headwinds such as weaker consumer demand, increased competition and poor sales in the north due to insecurity.”