Cadbury’s full-year profit up by 54% despite modest growth in revenue

Confectionery and food-processing giant, Cadbury Nigeria Plc has reported a 54% growth in its after-tax profit for Full Year ended 31^st December 2019 in spite of slight improvement in its revenue.

The comprehensive details of the company’s performance in the review period are published in its Un-audited Interim Financial Information for the Year Ended 31 December 2019 posted on the website of the Nigerian Stock Exchange (NSE).

Revenue inched up from the N35.973 billion posted at FY2018 to the N39.327 billion recorded in the relative period of last year, signalling a 9% increase.

Profit Before Tax (PBT) advanced by 26%, moving from N1.223 billion at FY2018 to N1.359 billion at FY2019.

Profit After Tax (PAT) rose by 54% from N823.085 million at FY2018 to N1.267 billion in the corresponding period of 2019.

Significant improvement in Cadbury’s bottom line principally stemmed from its ability to cut its Finance Cost from N592.231 million at FY2018 to zero in the year under review.

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It equally grew its Finance Income and Other Income from N116.768 million at FY2018 to N185.269 million at FY2019 and from N20.192 million at FY2018 to N87.128 million at FY2019 respectively.

Earnings Per Share (EPS) grew from N0.44 at FY2018 to N0.67 at FY2019, translating to 34.3% growth.

A subsidiary of British multinational confectionery of the same name, Cadbury began operations in Nigeria in the 1950s, when it began sourcing for cocoa as raw materials for its chocolate and chocolate drink products. It was listed on the NSE in 1976.

Its flagship brands include Bournvita, Tom-Tom and Butter Mint.

Cadbury’s dividend yield currently stands at 2.5%.

It has over 1.878 billion outstanding shares with a market capitalisation of about N20.191 billion.

It currently trades on th floor of the NSE at N10.75 per share.

Earnings Per Share is the profit that each unit of a company’s ordinary shares  yields  during a particular period. It is simply calculated by dividing the Profit After Tax by the company’s total outstanding shares.  Increase in a company’s EPS often reflects an improvement in its bottom-line while a fall, on the other hand, indicates a declining profit.

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