Cadbury Nigeria will pay less dividends for the financial period of 2020 as the company’s revenue dwindled last year.
Cadbury announced its revenue fell by 10 percent as at December last year.
In the company‘s financials released to the investing public on Tuesday, March 30, 2020, total turnover for the period was N35.40 billion, failing to surpass the N39.32 billion the company generated as revenue in 2019.
The declined revenue showed the the impact of COVID-19 on the consumer goods manufacturer which also recorded a drop in profit grossed for that period. Grossed profit was put at N5.89 billion in 2020.
This is 29 percent difference when compared to the N8.32 billion generated during the corresponding period of 2019. Profit before tax and after tax followed the same path as well.
It was gathered from the company’s earnings report that profit before tax of last year was N408.06 million, against the N1.53 billion posted by Cadbury during the same full year of 2019.
Profit after tax was no different as the N931.82 million reported in 2020 fell short of the N1.07 billion recorded during the corresponding period of 2019. This reflect a 13 percent difference when both periods were compared.
The disappointing earnings for full year 2020 led to the board of directors proposing a lower dividend payout. Cadbury management offered to pay N338.07 million as total dividend. This is below the N912.25 million paid out in 2019.
“The Directors are pleased to recommend to shareholders at the forthcoming Annual General Meeting, the declaration of a total dividend of N 338,076,353.16 (2019: N 912,256,000) that is Eighteen kobo (2019: Forty-nine kobo) per ordinary share of fifty kobo each.
“If the proposed dividend is approved it will be subject to the deduction of withholding tax at the appropriate rate at the time of payment.” the board of directors said in a statement.
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