Modupe Gbadeyanka
By Modupe Gbadeyanka
One of the major players in the confectionary and beverages markets in the country, Cadbury Nigeria Plc, has released its financial statements for the period ended June 30, 2017.
The firm, in the financial results, declared a loss of N766.4 million in both its pre and post-tax profits for the period under review.
This is in contrast to N216.4 million gained achieved 12 months ago in its pre-tax profit and N147.2 billion profit after tax recorded a year ago by the firm.
However, during the period, Cadbury Nigeria raised its revenue to N16.3 billion against N13.9 billion posted a year ago.
Furthermore, the cost of sales in the first half of this was in the negative of N13.1 billion versus negative N9.9 billion, while the gross profit stood at N3.2 billion as at June 30, 2017, compared with N4.1 billion in the corresponding period of 2016.
In the financial statements, Cadbury Nigeria Plc said it has a technical service, management service and royalty agreement with Mondelez Eastern Europe Middle East & Africa FZE and Cadbury UK Ltd.
It further said in light if pronouncements by the Financial Reporting Council of Nigeria (FRCN), it would be unable to make any accruals for these liabilities until it has obtained the approval of the National Office of Technology Acquisition and Promotion (NOTAP).
“No provision has therefore been made for royalty, technical service and management fees accruing for 2017 in these financial statements.
“If the company were to apply the most recently approved NOTAP rates against these draft agreements, there will be contingent liability of N274 million for the period under review,” the firm said.
