By Goddy Egene
Cadbury Nigeria Plc yesterday announced a profit after tax (PAT) of N932 million for the year ended December 31, 2020 as well as a dividend of N338 million for its shareholders.
The dividend, which translates into 18 kobo per share is lower than the 49 kobo paid the previous year. The reduction was due to the decline in profit for the company.
The audited results showed that Cadbury Nigeria Plc recorded a revenue of N35.407 billion, down from N39.327 billion in 2019. Cost of sales reduced from N31 billion to N29.508 billion, bringing the gross profit to N5.899 billion, compared to N8.326 billion.
The company reduced selling and distribution expenses by 12.1 per cent to N4.578 billion, as against N5.209 billion. Administrative expenses witnessed a 36 per cent reduction from N1.818 billion to N1.160 billion. The firm ended the year with a profit before tax (PBT) of N408.065 million, showing a decline of 73 per cent from N1.538 billion in 2019.
However, PAT was boosted to N932 million following a tax credit of N523 million.
The share price of Cadbury rose 1.8 per cent to close higher at 8.25 yesterday, as investors reacted positively to the dividend declaration.
But the equities market closed on negative note due to negative performance due to sell-offs in Dangote Cement Plc, Ecobank Transnational Incorporated and Fidelity Bank Plc. The Nigerian Stock Exchange (NSE) All-Share Index fell 0.57 per cent to close at 39,267.11, while market capitalisation shed N118.4 billion to be at N20.5 trillion.
Trading activity waned as volume and value declined 35.6 per cent and 69.3 per cent respectively to 336.1 million shares and N3.3 billion. The most traded stock by volume was Union Bank of Nigeria Plc with 78.9 million shares.
The incoming Chief Executive Officer (CEO) of Union Bank of Nigeria Plc, Mr. Emeka Okonkwo, had on Monday told the stock market community that the financial institution would continue to create greater value for all stakeholders.
We will also continue to provide compelling and innovative products to drive customer transaction growth and service delivery, whilst deepening our relationship with key stakeholders including NSE as we move towards our goal,” he said.