QUARTER RESULTS: CADBURY NIGERIA, BOC GASES


CADBURY NIGERIA: VERY STRONG START.

It was indeed a very promising first quarter of 2016 for Cadbury Nigeria PLCs worked and well deserved.
According to the unaudited results released recently, it all went so well that first quarter 2015's loss of N303.5m, was easily cancelled and replaced by N693.6m profit.

Every unit that made up the normal profit and loss account contributed its quarter.
Cadbury Nigeria's core revenue closed the quarter 5.79% up at N7121.2m while the direct cost of generating it decreased by 5.97% to N4741.1m. As a result gross profit rose by 40.7% to N2380m.

This was boosted further by 78% growth in finance income to N54.1m and 26% increase in Other income to N4.46m.

Then, things got better with more fruits of good cost control. There was 10.9% drop in selling and distribution cost to N1274m and 21.3% decrease in administration expenses to N470.9m.

It was such a perfect blending of efforts that by March ending  the gain on each N100 income was N9.66 compared to N44.9 loss previously.

Naturally, its liquidity position improved significantly with working capital closing at N2066.5m as against N1283.4m same time in 2015.

CADBURY NIGERIA PLC: (Nm)
                    first quarter
                         2016.           2015
Total income 7179.8.        6765.5
Core revenue 7121.2.         6731.7
Cost of sale.  4741.1.         5040.6
Gross profit.   2380.0.         1691.1
Other income    4.46              3.54
Distribution etc 1274.0.      1430.4
Administration   470.9.         598.1
Finance income.  54.1.           30.4
Profit before tax  693.6.       (303.5)
Working capital 2066.5.       1283.4
Profit margin %     9.66.         (44.9)

BOC GASES PLC: REWARD OF TIGHT GRIP

In trying times, firm grip pays handsomely. For BOC Gases PLC, that was the case in the first quarter of 2016 that inside the factory looked set to be a disaster

The thing was that according to figures for the period, core revenue had dropped by 3.08% to N506.3m only to be accompanied by a scary 12.9% increase in direct cost to N282.7m.

The net result was that profit foundation was rather shaky as gross profit dropped by 18.8% to N223.6m from N271.9m by 2015 first quarter.

Fortunately, BOC Gases was able to retain its grip on non direct costs. First selling and administration expenses dropped by 4.21% to N90.9m, and administration costs declined by 33.5% to N86.2m.

On its part, 60.7% decrease in finance income to N1.16m was neutralised by no finance cost in the quarter compared to N7.6m incurred same time in 2015.

In the end from 18.8 drop foundation, final profit before tax increased by 11.2% to N47.6m from N42.8m.

BOC Gases closed with a lower N208.3m working capital though but that was principally because N47.2m in short term borrowing by March 2015 was fully paid off.

Thus the company's profit margin came to 9.38% as against 8.15% by March 2015.

BOC GASES PLC: (Nm)
                      First quarter
                       2016.            2015
Total income  507.5.          525.3
Core revenue   506.3.          522.4
Cost of sale.    282.6.           250.5
Gross profit.     223.6.           271.9
Distribution        90.9.            94.9
Administration   86.2.           129.6
Finance income  1.16             2.92
Profit before tax  47.6.           42.8
Profit margin %   9.38.            8.15
Working capital  208.3         223.8

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