In the second quarter of 2023, Cadbury Nigeria Plc experienced a considerable setback, reporting a loss before tax of N17.9 billion. This is in stark contrast to the N800 million profit recorded during the same period in 2022.
The primary cause of this substantial loss was the N20.9 billion write-down the company incurred due to the impact of the unification of the naira on its loans. Cadbury holds forex-related loans with dollar-denominated interest rate components, and the depreciation of the Naira, which fell from about N460/$1 to about N790/$1, triggered significant forex losses.
Despite this challenging situation, Cadbury did manage to achieve growth in other areas. Top-line revenues saw a commendable increase of about 26%, reaching N19 billion, while gross profit also rose impressively by 176% to N7.2 billion.
Read More:https://www.investingport.com/cadbury-nigeria-plc-suffers-n209-billion-exchange-rate-loss/
The primary cause of this substantial loss was the N20.9 billion write-down the company incurred due to the impact of the unification of the naira on its loans. Cadbury holds forex-related loans with dollar-denominated interest rate components, and the depreciation of the Naira, which fell from about N460/$1 to about N790/$1, triggered significant forex losses.
Despite this challenging situation, Cadbury did manage to achieve growth in other areas. Top-line revenues saw a commendable increase of about 26%, reaching N19 billion, while gross profit also rose impressively by 176% to N7.2 billion.
Read More:https://www.investingport.com/cadbury-nigeria-plc-suffers-n209-billion-exchange-rate-loss/