It's concerning to see Cadbury Nigeria record a loss of N22.2 billion for the 2024 financial year, despite a significant 61% increase in revenue. This raises questions about the company's ability to translate revenue growth into profitability.
Key Highlights
The company's financial performance reveals some interesting trends:
- Revenue Growth: Cadbury Nigeria's revenue surged by 61% to N129 billion in 2024, driven by increased sales and market demand.
- Gross Profit Margin: Despite the revenue growth, the company's gross profit margin remained relatively flat, increasing by only 5% to N18.227 billion.
- Operating Performance: The company's result from operating activities fell by 24% to N5.961 billion, indicating potential operational inefficiencies.
- Equity and Share Capital: While the company's share capital increased by 21% to N1.140 billion, its total equity decreased by 57% to N4.38 billion, raising concerns about the company's financial stability.
Challenges and Opportunities
Cadbury Nigeria's performance highlights several challenges, including:
- Operational Inefficiencies: The company's inability to translate revenue growth into profitability suggests operational inefficiencies that need to be addressed.
- Financial Stability: The significant decrease in total equity raises concerns about the company's financial stability and ability to invest in growth initiatives.
However, the revenue growth and increased share capital also present opportunities for the company to:
- Invest in Growth Initiatives: Cadbury Nigeria can invest in growth initiatives, such as product development and marketing, to drive future growth and profitability.
- Improve Operational Efficiency: The company can focus on improving operational efficiency to translate revenue growth into profitability.
Overall, Cadbury Nigeria's performance highlights the need for the company to address operational inefficiencies and improve financial stability to drive future growth and profitability.
Cadbury Nigeria has recorded an after-tax loss of N10.4 billion in 2024 from N19.1 billion in 2023.
The consumer goods firm’s revenue grew to N129.2 billion from N80.4 billion during the period.
Further analysis reveals that revenue was driven mainly by domestic sales at N114.4 billion while export sales stood at N14.8 billion in 2024.
Inventories grew to N 13.04 billion from N11.9 billion during the comparable periods.
Cadbury’s inventories comprise raw and packaging materials at N4.8 billion, goods in transit at N3.84 billion, spare parts at N2.34 billion, finished products at N1.89 billion and product in process at N178.1 million.
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Disclaimer
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