CADBURY NIGERIA: NOT YUMMY IN 2016

Cadbury Nigeria manufactures yummy things; those things at least children eat, drink or lick and cant help licking tongue or fingers but it was not yummy for the company in 2016.

The sweet taste of the year vanished when cost of goods sold grew by 22.4% to N23119m while the value in Naira terms increased only 7.74% to N29978.4m.

Of course Cadbury was still to  profit on this direct transaction of N6869.4m but when compared to N8930m in 2015, the drop came to 23.2%.

To recover from that through income from other sources and drastic reduction in non-direct costs proved very difficult.

Sure there was 187.8% rise in income from sale of by products to N61.3m and true too management did a good job by decreasing selling and distribution expenses by 0.45% to N5595.7m and growing administration cost by only 7.81% to 2058.9m, it was not good enough.

Thus Cadbury Nigeria found itself recording N732.9m operating loss compared to N1420.6m profit in 2015.

Meanwhile, liquidity was getting tighter due to more than tripled prepayments of N823.2m, 159.3% rise in inventories to N5020.9m despite 13.2% increase in payables to N12 566.7m and drop in receivables to N4952.7m (down 3%).

So Cadbury Nigeria that had to recourse to N151.4m and so incur interest charges of N17.8m which watered down the impact of N187.8m finance income.

So net finance income of N170m compared to 2015's N156.8m could only reduce loss for the year to N562.9m as against N1577.4m profit before tax previously.

Certainly not yummy even when N276.3m paper profit  helped reduce final comprehensive loss to N20.1m it still was not yummy.

CADBURY NIGERIA: Nm Full year.
                                2016.        2015
Total income. 30228.5.   28003.3
Core income.  29979.4.   27825.2
Cost of sale.    23119.0.  18895.0
Gross profit       6860.4.    8930.2
Other income        61.3.        31.3
Sellind & Distr. 5595.7.     5621.2
Administration 2058.9.     1909.7
Operating profit (732.9)   1420.6
Finance income 187.8.      156.8
Finance cost         17.8.        -
Profit b4 tax.     (562.9).    1577.4
Margin %            (1.86).        5.63
Working cap       987.8.     1093.4
Overdraft.            151.4.         -
Prepayments.     823.2.      234.1
Payables.          12,566.7. 11104.4
Receivables.       4952.7.   5106.2
Inventories          5020.9.   1936.5

Comments

Post a Comment

Popular posts from this blog

2018: TWO BLOWS TO UNITED CAPITAL PLC.

When a child who in a previous examination scored 80%, comes home with a new report in which he now scores 67.2%, the parents have a right to sit him down and ask how come. So it must be between Nigeria's United Capital Plc and its discerning shareholders since the release of the company's 2018 audited figures. In 2018, all said and done, says the annual report, United Capital ended with 67.2 % profit margin compared to 80.2% in 2017. How come? What comes across from the figures was that the company received 2 blows to the jugular in 2018: Sharp drops in Investment income and fair value gain. Investment income dropped by 10.8% to N4422.8m from N4965.2m while fair value on financial assets plunged by 79.7% to N6.173m from 2017's N30.387m. In view of both drops, the group's gross earnings grew by only 33.9% to N9259.4m despite strong growths in net trading income, and net operating income leap to N757.5m from N143.5m  Other income streams ended with single digit increase....
Read more

KENYA AUCTIONS Ksh 13.84bn Treasury Bonds.

The Central Bank of Kenya (CBK) will from Tuesday December 18 to 27th 2018_ auction Ksh 13.84bn worth of fixed income Treasury Bonds with issue date December 17, 2018. According to official statement from the Director of Financial Markets Irene Njiru on Monday December 17, auction will continue throughout the stated period or close once the target money to be raised is reached, whichever comes first. Bid value will be paid for at most by 2pm December 31, 2018 while auction results will be made public on December 28, 2018 after the scheduled closing date. The bonds are being issued at 12.502% fixed interest at an adjusted average price of Ksh 100.468 for Ksh 100 bond. However, price payable after auction results publication will be average of successful bid prices based and allotment will be on first come first served basis. Meanwhile, the monetary operations and debt management department has released the interest payment schedule for 13 Treasury Bonds due January and February 2019. Th...
Read more

NAIROBI SE's HIGH PRICED EQUITIES.

In the wake of Nigeria's high priced quoted companies posted in this blog a while ago, Henates took a look to at Nairobi Securities Exchange June 23 official list to identify its high priced equities and the outcome was interesting too. Of the 66 companies quoted on the market by June 23, 15 or 22.7% were valued averagely at above 30 times nominal value. A word of caution though: There are two clear differences between the Nigerian stock market list and that of Nairobi: In the Nigerian one most listed companies have par or nominal value of N0.50 as is there is an implied agreement on this. On the other hand, at Nairobi most of the equities do not share common par value, they differ greatly. Then another thing, Nigerian equities are not valued below par, Nairobi ones can and many are so valued. Of the top 15 high priced equities at the Nairobi market, Safaricom topped with because by June 23, at 23.25 Ksh average price, it was valued 465 times its nominal value of just 0.0...
Read more