HomeBusinessCadbury Reports N10.4billion Loss for 2024

Cadbury Reports N10.4billion Loss for 2024

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KEY POINTS


  • Accounting records show Cadbury posted a 45 percent reduction in its losses while citing N10.4 billion as its total loss earnings during 2024.
  • The refreshment beverages segment contributed N77.5 billion to drive a 61 percent increase in revenue during 2024.
  • By integrating debt forgiveness and loan conversion into its corporate strategy Cadbury Nigeria managed to establish N1.4 billion in new equity.

For the fiscal period ending December 31st 2024 Cadbury Nigeria Plc recorded a net deficit of N10.4 billion.

The reduced deficit demonstrates remarkable progress because it represents a loss reduction of 45 percent from the previous N19.1 billion figure.

During 2024 Cadbury Nigeria Plc achieved an impressive 61 percent revenue growth which raised their financial performance to N129.2 billion from N80.4 billion in 2023.

Most of this growth came from their refreshment beverages segment which added N77.5 billion revenue. The increase in costs combined with gross profit to form a percentage increase of only 1 percent totaling N17.5 billion.

According to the organization, it registered a 19 percent reduction in operating activities by generating N6.4 billion due to rising administrative and distribution expenses.

Strategic moves to strengthen financial position

Cadbury Nigeria returned to positive total equity levels and transformed its initial N6.5 billion deficit into favorable N1.4 billion during this period.

The company benefited from two financial moves by its parent firm Cadbury Schweppes Overseas Limited. They first announced debt forgiveness worth $20 million followed by a $40 million strategic funding extension.

The conversion of a $7.72 million intercompany debt into equity triggered the issuance of 402,082,657 ordinary shares by shareholders. The conversion of the $7.72 million intercompany loan will add N7.04 billion to Cadbury’s shareholder funds base while improving its financial stability.

While operational results continue to improve, Cadbury faces considerable obstacles from FX devaluation and heightened inflationary pressures after the naira slipped to over N1,400 per US dollar from N911.68.

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