Cadbury Nigeria declares N14.52bn loss in H1 2023
With about N20.77 billion exchange losses, Cadbury Nigeria Plc has declared N14.52 billlion loss in half year ended June 30, 2023 as against N3.35 billion reported in half year (H1) ended June 30, 2022.
The multinational company listed on the Nigerian Exchange Limited (NGX) declared N35.61 billion revenue in H1 2023, a growth of 27.7 per cent from N27.88 billion reported in H1 2022.
The company, however, reported a loss before tax of N17.9 billion in the second quarter of 2023. This compares to the N800 million profit reported at the same time in 2022.
The reason for the loss was a whopping N20.9 billion write-down the company took due to the impact of the unification of the naira on its loans.
The company carries forex-related loans with dollar-denominated interest rate components that triggered the losses. The depreciation of the Naira from about N460/$1 to about N790/$1 triggered the forex losses.
However, Cadbury was able to grow its top-line revenues by about 26per cent to N19 billion while gross profit also rose 176per cent to N7.2 billion.
Despite the losses arising from the extraordinary fx losses, Cadbury posted an operating profit of N1.5 billion, representing a 64per cent increase yearly.
