A Capital Market analyst, Mr. Tunji Soyinka, has commended the management of Cadbury Plc for returning the conglomerate to the path of profitability.
The stockbroker described the company’s ability to bounce back from loss-after-tax of N296 million as at 2016, to a profit-after-tax of N299 million by the end of 2017, as a way of restoring investors’ confidence in the shares of the company.
He said, “The management is keeping costs in check. Cadbury’s strong profit in the fourth quarter of last year was being strengthened in the third quarter performance, as its result had been more stable, which foreshadowed a stronger performance in 2018.”
He added that the outlook for the Consumer Goods sector in 2018 appeared bright on many fronts, as the pressure on its revenue was expected to further subside, as consumer spending recovers in the years.
Recall that Cadbury Nigeria’s Plc reported a total asset of N28.423 billion in its financial year ended December 31, 2017, against N28.409 billion recorded in the period under review, last week.
Its total liabilities stood at N16.680 billion lower than N17.352 in 2016. The beverage manufacturing company suffered a big profit slash between 2015 and 2016, while profit after tax stood at N350 million.
Also, the company’s revenue increased by 10 per cent from N29.9 billion in 2016 to N33 billion in 2017. The company made a profit before tax of N350 million in 2017, as against a loss before tax of N562 million in 2017, while its earnings per share went up to 16 kobo.
Cadbury recorded a gross profit of N7.435 billion from N6.860 billion, representing a growth of eight percent, while result from operating activities increased by 198 per cent to N711.365 million, from a loss of N732.853 million.
