Cadbury Nigeria Plc has released its Q1 2022 financial results revealing a profit of N1.54 billion. This reflects a whopping 538% increase compared to N242 million in the corresponding period of 2021.
During the year under review, prices of goods and services continued to rise, resulting in inflationary pressures that impacted both consumers and producers.
Despite the double-digit inflation during the period, profit was supported by cost management practices as the cost of production increased by only 14%, compared to a 19% increase in 2021.
Key highlights of the result
- A cursory view of the result shows that the company’s profit was driven by significant sales of the company’s geographical segments, that is, Domestic and Export sales. Both segments delivered revenue of N12.79 billion in Q1 2022 compared to N8.92 billion in the same period of 2020.
- Domestic sales raked in N12.32 billion during the period to appreciate by 44%, representing 96% of the total revenue.
- While exports grew by 24% to generate N465 million.
- In addition, the company also made money from interest income on deposits and bank accounts, generating N375 million.
- Also, the company raked in N10 million as income from the disposal of property, plant and equipment.
- The company’s selling and distribution expenses increased by roughly 14%, during the period, the same as expenses on administrative obligations.
- A further look at the financial results showed that the company’s long term borrowing stood at N6.55 billion, while its total assets are now at N49.35 billion, net assets grew 11.30% to N15.18 billion.
Cadbury Nigeria Plc had declared a dividend of N0.50 kobo for FY 2021, to be paid on June 16, 2022, while Earnings per share for Q1 2022 is N0.82.
The company last traded at N8.50 per share and has declined by 3.41% from year-to-date. Subscribe to the Nairametrics Stock Select Newsletter to access our stock pick.