Cadbury profit drops by N482.11m, as investors lose N375.64m

Cadbury Nigeria recorded a drop in profit in 2021, declining by -51.7%, amid a period investors holding its share suffered millions of naira loss in their investment in the chocolate company.

The consumer foods manufacturer had generated N42.37 billion revenue in Full Year 2021, above the N35.40 billion it earned during the corresponding period of 2020, according to its 2021 FY financials.

But cost of production of goods like Bournvita, TomTom, and other brands ate into its turnover last year, as it spent N35.89 billion to manufacture the products, higher than the N29.50 billion it used between January to December 2020.

With its gross profit improving by 9.8% to hit N6.47 billion in twelve months of last year, against the N5.89 billion reported during the same period in 2020.

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However, its profit for the year slumped to N449.71 million in 2021, failing to surpass the N931.82 million it recorded a year before – this is a difference of 51.7%, which represents N482.11 million.

During the twelve months period of 2021, investors who held a long position in Cadbury Nigeria lost N375.64 million from their total funds in the TomTom manufacturer, as the capital market turned bearish against Cadbury stock last year.

Some investors sold off their Cadbury stock to take out their funds, as they expect a price decline in the equity, resulting to a dip in the asking price for Cadbury share at the end of last year.

The bearish sentiment saw Cadbury share lose 2.22% of its value, causing shareholders total investment to dwindle to N16.52 billion at the end of December 2021, from N16.90 billion it started last year with.

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