CADBURY’S ANNUAL PROFIT MORE THAN DOUBLES AS REVENUE EXCEEDS N55 BILLION.

Cadbury Nigeria reported a net profit for 2022 that was more than two times higher than the figure reported a year earlier, as the food company experienced remarkable growth across key income sources, according to an unaudited earnings report released on Wednesday.

Revenue increased by 30.3 percent to N55.2 billion, owing to an increase in domestic sales, which accounted for 96.1 percent of total revenue.

Much of that was eroded by input costs, selling and distribution expenses, and administrative expenses as the beverage maker battled galloping inflation in Africa’s largest economy, where core inflation accelerated from 13.87 percent to 18.5 percent in the fiscal year under review.

While sales costs increased by nearly one-third to N47.4 billion, selling and distribution costs increased by more than a quarter to N6.4 billion, and administrative costs increased by 31.2 percent to N1.2 billion.

These were the major pressure points for operating profit, which fell from N491.5 million to N247.2 million.

Cadbury Nigeria is controlled by Cadbury Schweppes Overseas Limited, which owns 75% of the company.

Other income increased by 3,713.4 percent to N81.5 million as a result of gains on the sale of property, plant, and equipment, as well as insurance claims received.

The main driver of the profit increase, however, was net finance income, which increased from N606.4 million to N1.1 billion due to a significant increase in interest income on bank deposits.

Pre-tax profit increased to N1.4 billion, a 23.1% increase over the previous year.

Profit for the year increased by 110.4% to N946.1 million, up from N449.7 million the previous year.

Total assets increased by 36.7 percent, from N43.7 billion to N59.7 billion.

Cadbury began operations in Nigeria in the 1950s, sourcing cocoa and importing bulk products, which it then repackaged into tins for local distribution. It opened its first factory in January 1965 and went public in 1976.