Cadbury Nigeria has reported a N22.2 billion loss for the 2024 financial year, marking a slight improvement from its N22.4 billion loss in 2023. The company disclosed these figures in a corporate filing with the Nigerian Exchange Ltd. on Tuesday.
Revenue Growth Amidst Financial Challenges
Despite the recorded loss, Cadbury Nigeria's revenue saw a significant boost, rising by 61% from N80.378 billion in 2023 to N129 billion in 2024. However, this surge in revenue did not translate into substantial profit growth, as the company’s gross profit increased marginally by just 5%, reaching N18.227 billion from N17.337 billion the previous year.
Declining Equity and Operating Income
While the company's share capital rose by 21%, increasing from N939 million in 2023 to N1.140 billion in 2024, its total equity took a sharp hit, plummeting by 57% from N10.22 billion to N4.38 billion.
Furthermore, Cadbury Nigeria’s operating income declined significantly. The result from operating activities dropped by 24%, from N7.872 billion in 2023 to N5.961 billion in 2024, highlighting ongoing financial pressures despite increased revenues.
Outlook and Industry Implications
The mixed financial performance raises concerns about cost management, inflationary pressures, and operational efficiency within the company. While revenue growth remains a positive sign, the continued losses and declining equity pose challenges for long-term sustainability.
Stakeholders and investors will be keenly watching Cadbury Nigeria’s strategic response to these financial hurdles as the company navigates a highly competitive and volatile market.