Cadbury Nigeria Posts 191 Percent Increase in Profit Before Tax in 2021

Cadbury Nigeria, a food, sweets and drink company headquartered in Lagos, Nigeria, grew revenue by 20 percent in the year ended December 31, 2020.

In the company’s unaudited financial statement released on Wednesday, gross profit increased by 10 percent to N6.507 billion from N5.899 billion it closed in the same period of 2020.

The company grew results from operating activities to N578.906 million, representing a 105 percent jump from N281.824 million filed in the corresponding period.

Profit before tax also rose 191 percent to N1.186 billion from N408.065 million in the 2020 financial year.

However, the company’s income tax dragged on the firm’s profit after tax as Cadbury paid N355.920 million in tax compared to N523.762 million tax credit received in the same period of 2020.

Profit after tax dipped to N830.481 million in the period under review, 11 percent below N931.827 million recorded in 2020. Basic earnings per share also declined by 11 percent 44.22 kobo.

Cadbury history in Nigeria dates back to the 1950s when it began sourcing for cocoa and also importing bulk products and repacking it into tins for sale in the country. Later finding increasing market opportunities in the country, the group set up a manufacturing facility in January 1965.

The firm became a publicly quoted company in 1976 when Cadbury sold 20% of its interest in the firm. The firm’s investment in the integration of its supply chain led to the establishment of a sorghum conversion plant and Stanmark Industries in Ondo, a cocoa processing plant. Stanmark provides raw materials for its key product, Bournvita and is a source of foreign currency through exportation of cocoa products. In 2006, the subsidiary processed 15,000 tonnes of cocoa beans into cocoa butter, cocoa liquor and cocoa powder.

In 2006, the firm released a statement disclosing financial misstatements in a number of previous annual reports. Immediately after the disclosure, the CEO and finance director resigned their positions. The firm later announced it will be taking exceptional item charges on its balance sheet as a result of the misstatements.