Cadbury Nigeria Plc released its 2014 Q1 results showing a 30% drop in earnings per share to 26kobo compared to 36kobo a year earlier. Highlights of the result are as follows;
- Revenue dropped 17% to N6.9billion compared to N8.3billion a year earlier
- It is also a 25% decline from the N9.2billion revenue earned in the last quarter of 2013
- Gross profit was N2.8billion a 12% decline from the N3.2billion posted a year earlier
- Operating expenses rose 2.7% to N2billion. However the drop in sales reduced operating profit margin to 12.2% compared to 14% a year earlier
- Pre-tax profits was N1.1billion a 31% decline from the N1.6billion posted a year earlier. This was also very much lower (about 52%%) compared to the N2.1billion posted in the last quarter 0f 2013
- Return on equity at the end of the period was 4.4% compared to 4.8% posted a year earlier
- The reason for the decline in profitability is placed squarely on the drop in revenue.
- I will update once information is obtained as to why revenue dropped that much
