Cadbury Nigeria Plc recorded a modest growth in sales in 2016, but increased cost of sales and operating expenses constrained the bottom-line to a net loss of N296.4 million.
The Nation reports that following the development, the Board of Directors will not be recommending any dividend payment to shareholders. The company had distributed N1.22 billion as cash dividends for the 2015 business year.
Key extracts of the audited report and accounts of Cadbury Nigeria Plc for the year ended December 31, 2016 released yesterday, showed that total sales rose by eight per cent from N27.83 billion in 2015 to N29.98 billion in 2016. Cost of sales however rose by 22 per cent from N18.89 billion to N23.12 billion. Gross profit thus dropped by 23 per cent from N8.93 billion in 2015 to N6.86 billion in 2016. While the company held down operating expenses, operating profit reversed from N1.42 billion in 2015 to a loss of N732.85 million in 2016.
With these, the company’s pre-tax profit of N1.58 billion in 2015 was replaced with pre-tax loss of N562.87 million. After taxes, net loss stood at N296.40 million in 2016 as against a net profit of N1.15 billion in 2015. Earnings per share thus reversed from 61 kobo in 2015 to a loss per share of 16 kobo in 2016. Net assets per share also declined by 10 per cent from N6.54 in 2015 to N5.89 in 2016, with shareholders’ funds declining by the same margin from N12.3 billion in 2015 to N11.1 billion in 2016.