Soaring finance charge takes shine off Cadbury Nigeria’s profit

Cadbury Nigeria Plc, said if it wasn’t for soaring net finance charges, shareholders would have found more to cheer about in its first quarter results.

The Bournvita maker said that revenue grew 2% in the first three months of 2018 to ₦8.2bn, from ₦8bn in the previous year.

Operating Profit surged 76.2% to ₦213 million from ₦121 million in the prior year, helped by sustained growth and effective cost management initiative. Administrative charges fell by 23% to ₦341 million from ₦443 million a year ago. However, a skyrocketing net finance cost which grew 629% to ₦181 million erased most of the gains. Cadbury Nigeria returned to profitability in full year ending December 2017.

Net profit declined 76.3% to ₦22 million from ₦93 million in 2017.

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