Cadbury Schweppes Overseas Limited, controlled by Mondel–z
International Inc, is a major investor in Cadbury Nigeria with 74.97 percent
stake.
In a statement on Tuesday sent to the Nigerian Exchange
Limited, NGX Cadbury Nigeria said it borrowed $23 million from Cadbury
Schweppes to settle outstanding third-party loans obtained to fund raw material
imports and other input costs.
Cadbury Nigeria said it is facing challenges servicing the
foreign currency-denominated loans due to persistent foreign currency scarcity
in the country.
“The liberalisation of the foreign exchange market in June
2023 and attendant devaluation of the currency put further pressure on the
Company as the Naira value of its foreign currency denominated loans increased
significantly,” Cadbury stated.
“This resulted in an unrealised exchange loss of ¦ 20.6
billion and a loss after tax of ¦ 10.2 billion for the period ended, 30
September 2023.”
Cadbury Nigeria said it has been able to repay $18.6 million
of the principal and accrued interest to the investor, leaving an outstanding
balance of $7.7 million as of December 31, 2023