Cadbury Nigeria Plc, a prominent player in the consumer goods sector, has delivered disappointing news to its shareholders as it announced that no dividends will be paid for the financial year 2023.
The decision follows a significant loss suffered by the company, amounting to N19.09 billion after tax as detailed in its annual report and financial statements filed with the Nigerian Exchange Limited.
This loss represents a drastic downturn from the previous year, a 3,374% tumble from a profit of N583.11 million recorded in 2022.
The company’s revenue, however, surged by 46% to N80.38 billion from N55.21 billion in the preceding year.
The dire financial performance has led the directors of Cadbury Nigeria Plc to refrain from recommending any dividend payout for the year, in stark contrast to the N751.28 billion dividend enjoyed by shareholders in 2022.
With retained earnings plummeting to a negative N11.36 billion and total equity turning negative to N6.51 billion from N13.30 billion, the company faces a challenging path to financial recovery.
The company attributed its poor performance to various factors, including rising net finance costs, which surged by over 3000% to N36.03 billion from N1.10 billion.
Cadbury Nigeria Plc, majority-owned by Cadbury Schweppes Overseas Limited, with the remaining stake held by a diversified spread of individual and institutional shareholders, has a rich history dating back to its incorporation in Nigeria in 1965.
