High operations, sales and net finance costs have resulted in the ₦10.7 billion loss recorded by Cadbury Nigeria Plc in its unaudited financial statement submitted to the Nigerian Exchange Group on Monday, 27th, 2025.
By the unaudited financial statement, the company recorded a gross profit of ₦17.5 billion as of 31st December, 2024, showing a slight increase from its recorded gross profit of ₦17.3 billion for its audited financial statements as of December 31st, 2023.
The company’s results from operating cost, which stood at ₦6.4 billion, was far less than the net finance costs of the company, which amounted to ₦21.2 billion. This resulted in a loss before tax of ₦14.8 billion. The income tax of the company for 2024 stood at ₦4.4 billion.
The final loss suffered by the company after tax then amounted to be ₦10.7 billion.
The company’s revenue made an interesting comeback when it rose to ₦129.2 billion as of 2024, from ₦80.4 billion in 2023. This increase in revenue is a result of the demand strength of the company’s beverage products, which accounted for N77.5bn of the total revenue.
Per the report submitted to the NGX, increase in the company’s company’s revenue can also be attributed to increased domestic sales, which amounted to ₦114.4 billion in 2024. On the other hand, export sales stood at ₦14.8 billion in the year under review.
Results from operating activities fell by 19 per cent to ₦6.4 billion in 2024 from ₦7.9 billion in 2023, reflecting an improvement in administrative and distribution costs for the company. Net finance costs also improved from ₦36.0 billion in 2023 to ₦21.3 in 2024.
To improve the company’s loan structure and overall net finance cost, the company’s Board approved some loans and loans conversion in 2024, including the conversion of an outstanding intercompany loan of $7.72 million (₦7.04 billion) owed to its majority shareholder, Cadbury Schweppes Overseas Limited, to equity.
The Board also approved an intercompany loan of $40 million from Cadbury Schweppes Overseas Limited, to support the repayment of overdue FX loans owed to local banks.
Still in 2024, the Board negotiated a $20 million debt forgiveness on the loan with CSOL. The $20 million debt forgiveness was incorporated into the company’s financial statements under “other reserves” as a contribution from its parent company.