Cadbury released its 2014 9 Months results with earnings per share dropping 28.5% to 88kobo. Here are the key highlights of this periods results
- Revenue dropped 5% to N7.9billion this quarter compared to Q2 2014 which was N8.4billion. Except for this year Q1 (N6.9billion) Cadbury had not dropped below N8billion since Q3 2012.
- Revenue year on year was down 12% to N23.3billion
- The drop in revenues of 12% was higher than the drop in cost of sales of 9.5% ensuring that gross profit margins will weaken by 16% year on year. Gross profit quarter on quarter also dropped by 3%.
- Operating expenses for the three months to September 2014 increased by N300million to N2.3billion considering that the company averaged about N2billion in the preceding quarters.
- This sent adjusted operating profits tumbling by a further 45% year on year.
- Finance income which has earned the company over N300million a quarter since 2012 has dwindled this year reporting just N6million this quarter only. The previous two quarters were N275million and N28million respectively.
Culprits here are Revenues, rise in opex and drop in finance income.
Cadbury share price 23/10/2014 was N52.5 and still attracts a P.E of 20x. Get the results here