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Cadbury Nigeria Plc has reported a loss after tax of N10.4bn for the year ending December 31, 2024, representing a 45 per cent reduction compared to the N19.1bn loss recorded in 2023. The improvement was driven by a 47 per cent reduction in loss before tax, which declined to N14.9bn from N28.2bn in the prior year.

In the company’s un-audited financial statement filed on the Nigerian Exchange on Monday, despite the reduction in losses, revenue for the period surged by 61 per cent to N129.2bn, up from N80.4bn in 2023, supported by performance in the refreshment beverages segment, which accounted for N77.5bn of the total revenue.

However, gross profit grew marginally by 1 per cent to N17.5bn from N17.3bn, constrained by higher costs.

Results from operating activities fell by 19 per cent to N6.4bn from N7.9bn, reflecting administrative and distribution costs.

Meanwhile, Cadbury’s total equity improved, swinging from a negative N6.5bn in 2023 to a positive N1.4bn in 2024, buoyed by a 21 per cent rise in share capital to N1.1bn and a significant increase in share premium and other reserves.

The company recorded a 55 per cent improvement in basic loss per share, which stood at 457 kobo, compared to 1,016 kobo in 2023. Net assets per share also improved but remained at a low of 63 kobo, compared to a negative 347 kobo the previous year, marking a 118 per cent change.

Cadbury’s non-current assets rose by 11 per cent to N25.6bn, driven by investments in property, plant, and equipment, while current assets declined marginally by 3 per cent to N39bn, primarily due to a drop in cash and cash equivalents from N20.5bn to N16.3bn.

On the liabilities side, current liabilities decreased by 10 per cent to N62.4bn from N69.19bn, largely due to a reduction in borrowings. Non-current liabilities also dropped by 6 per cent to N707.2m, reflecting a slight decrease in employee benefits and lease obligations.

The company attributed its performance to foreign exchange adjustments on intercompany loans and a reduction in finance costs, which fell during the year.

However, ongoing challenges such as rising costs, FX volatility, and operational inefficiencies continue to weigh on profitability.

Cadbury’s segment analysis showed that refreshment beverages remained the top-performing business line, contributing N77.5bn to revenue, followed by confectionery at N37.4bn, while intermediate cocoa products added N14.3bn. The biscuit segment recorded a marginal loss, contributing a negligible figure to the company’s revenue.

Despite the operational improvements, Cadbury continues to face a challenging business environment, with external factors such as FX devaluation and inflation impacting its financial results.

The company has taken steps to strengthen its financial position following the devaluation of the naira, which saw the currency fall from N911.68 in December 2023 to over N1,400 per US dollar in January 2024.

Additionally, the company’s Board of Directors recently approved a strategic intercompany loan of $40 m from its parent company, Cadbury Schweppes Overseas Limited, to help settle overdue foreign exchange loans owed to local banks.

In a move to further address its financial obligations, Cadbury Nigeria negotiated a $20m debt forgiveness on the loan with CSOL. This decision was influenced by the depreciation of the Naira, which impacted the company’s foreign debt servicing costs. The $20m debt forgiveness has been incorporated into the company’s financial statements under “other reserves” as a contribution from its parent company.

“On 28 January 2024, the Board of Directors negotiated a debt forgiveness of $20 from CSOL on the $40 m received on 15 January 2024. This was necessary due to the significant devaluation of the naira from N911.68 in December to N1400+ in January 2024 against the US dollar. The debt forgiveness amount has been included as part of other reserves in the financial statements as it is a contribution from the parent company,” the company added.

In another key development, on February 8, 2024, the company’s shareholders approved a resolution to convert a $7.72m intercompany loan owed to CSOL into equity. This loan conversion will result in the allotment of 402,082,657 ordinary shares, each priced at N17.50 per share, based on the company’s share price as of December 27, 2023. This move is expected to increase Cadbury Nigeria’s shareholder funds and net assets by N7.04bn, further solidifying the company’s balance sheet and providing a solid foundation for future growth.

The PUNCH reported that Cadbury Nigeria Plc has reported a loss after tax of N9.72bn for the first half of the year, a 33 per cent improvement in the company’s bottom line when compared to the N14.54bn loss it suffered in the same period of last year.

-By Temitope Aina

Nigeria, through the Debt Management Office (DMO), has offered three bonds for subscription to interested investors to the tune of N450 billion.

The DMO, in its offer circular on Monday, said that the first offer was an April 2029 FGN bond, valued at N100 billion at an interest rate of 19.30 per cent per annum. (5-year re-opening).

It listed the second offer as a February 2031 FGN bond valued at N150 billion at an interest rate of 18.50 per cent per annum. (7-year re-opening) and the third offer (January 2035 FGN bond) valued at N200 billion.

The auction date is January 27, and the settlement date is January 29, the notice stated.

According to the DMO, the FGN bonds are offered at N1,000 per unit subject to a minimum subscription of N50 million, and in multiples of N1,000 thereafter.

“For re-openings of previously issued bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.

“Interest is payable semi-annually, while bullet repayment (principal sum) is on the maturity date, ” the DMO said.

It said that the bonds were backed by the full faith and credit of the Federal Government, and were charged upon the general assets of Nigeria.

“They qualify as securities in which trustees can invest under the Trustee Investment Act.

“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among others.

“They are listed on the Nigeria Exchange Limited, ” it said.

Zenith Bank Plc has revealed that it raised N350.4bn from its combined rights issue and public offer thus exceeding the N290bn it had sought to raise.

In a statement released to the Nigerian Exchange Group on Sunday, the bank indicated that it has also received regulatory approval from the Central Bank of Nigeria and the Securities and Exchange Commission.

Zenith Bank’s combined offer included a rights issue of 5,232,748,964 Ordinary Shares of 50k each at N36.00 per share and a public offer of 2,767,251,036 Ordinary Shares of 50k each at N36.50 per share. The offer opened on August 1, 2024 and closed on September 23, 2024.

Both offerings were oversubscribed. While the public offer was 160.47 per cent subscribed, with a total of 4,440,587,250 Ordinary Shares allotted based on the terms of the offer and the CBN’s Capital Verification Exercise, the rights issue was also 100.18 per cent subscribed with a total of 5,232,748,964 ordinary shares allotted.

With this result, Zenith Bank has become one of the few banks in Nigeria to meet and even surpass the CBN’s N500bn minimum capital requirements for Banks with international authorisation well ahead of the March 2026 regulatory deadline. The bank’s share capital will now rise to N614.65bn, which is N114.65bn above the regulatory minimum requirement.

Speaking on the development, the Group Managing Director/Chief Executive of Zenith Bank Plc, Dr Adaora Umeoji, said, “The success of our combined rights issue and public offering is a testament to the strong confidence and trust that our shareholders, investors, and stakeholders have in Zenith Bank’s vision, strategy, and brand.

“This landmark transaction underscores our commitment to strengthening our capital base, enhancing our competitive edge, and positioning ourselves for sustainable growth and profitability. We deeply acknowledge the invaluable and strong support of our regulators, the Central Bank of Nigeria and the Securities and Exchange Commission, and are grateful for their guidance in ensuring the integrity and efficacy of the exercise. This successful transaction will enable us to continue delivering value to our stakeholders, while also contributing to the growth and development of the economy.”

The bank said that the proceeds from the hybrid offer will be used to solidify its “position as the leading financial institution in Nigeria. Additionally, the funds will support the Bank’s expansion into other markets in Africa and Europe, investment in technology and other Group-wide growth initiatives.”

Also, the offer was successfully executed largely as a digital offer, embracing the power of technology to improve access to the equity capital market as it seamlessly leveraged the Nigerian Exchange Limited’s e-Offer platform, NGX Invest.

In March 2024, the CBN directed commercial banks with international authorisation to increase their capital base to N500bn and national banks to N200bn, while those with regional authorisation are expected to achieve a N50bn capital floor.

Similarly, non-interest banks with national and regional authorisations will need to increase their capital to N20bn and N10bn, respectively.

-By Oluwakemi Abimbola

The Nigerian equity market recorded a surge last week, as the All-Share Index and market capitalisation appreciated by 1.22 per cent and 1.26 per cent, respectively.

This brought the ASI to 103,598.30 points, while the market capitalisation rose to N63.645tn, reflecting a N794bn increase.

Investors traded a total turnover of 3.132bn shares worth N76.552bn in 61,456 deals during the week. This marked a rise compared to the 2.252bn shares valued at N58.831bn traded in 63,657 deals the previous week.

The financial services industry led the activity chart, contributing 74.59 per cent to the total equity turnover volume and 43.13 per cent to the value. Investors in the sector exchanged 2.336bn shares valued at N33.014bn in 27,100 deals.

Following this was the services industry, with 284.988m shares worth N807.646m traded in 4,638 deals. The consumer goods industry ranked third, recording a turnover of 139.010m shares valued at N5.704bn in 6,469 deals.

Trading in the top three equities were Wema Bank plc, Secure Electronic Technology plc, and Access Holdings plc, which accounted for 1.437bn shares worth N15.406bn in 5,292 deals. These equities contributed 45.89 per cent and 20.13 per cent to the total equity turnover volume and value, respectively.

In the exchange-traded products market, 35,261 units valued at N4.353m were traded in 123 deals last week, compared to 163,360 units valued at N15.866m transacted in 80 deals the previous week.

Similarly, in the bond market, 73,260 units worth N74.373m were traded in 30 deals, a drop from the 164,521 units valued at N160.490m recorded in the previous week in 52 deals.

Despite the overall market growth, some indices posted losses. While most indices finished higher, the insurance, consumer goods, oil and gas, and sovereign bond indices depreciated by 1.20 per cent, 1.20 per cent, 0.93 per cent, and 0.10 per cent, respectively. The Alternative Securities Market index closed flat.

Additionally, 44 equities appreciated in price last week, up from 33 equities in the previous week. However, the number of decliners dropped to 44 from 57 in the previous week, while 64 equities remained unchanged, slightly higher than the 62 recorded in the prior week.

Among the top price gainers were SCOA Nigeria plc, which surged by 59.68 per cent to close at N3.96, and UPDC plc, which gained 19.05 per cent to close at N2.00. Coronation Insurance plc followed with a 15.32 per cent increase to N2.56, while Royal Exchange plc and Daar Communications plc rose by 14.61 per cent and 13.51 per cent, respectively.

Conversely, Sunu Assurances Nigeria plc led the decliners, losing 25.11 per cent to close at N5.01. Eunisell interlinked plc dropped by 18.95 per cent to N12.66, while John Holt plc fell by 18.47 per cent to N8.30. Abbey Mortgage Bank plc and Cornerstone Insurance plc recorded losses of 14.60 per cent and 14.29 per cent, closing at N3.10 and N3.48, respectively.

Performance across sectors under our coverage was mixed, with three indices gaining while the other three lost. The banking index led the gainers, rising 4.1 per cent week-on-week, driven by buy interest in United Bank for Africa (+7.7 per cent), Zenith Bank (+6.0 per cent), and Access Holdings (+4.8 per cent).

Following closely, the AFR-ICT and industrial goods indices rose 2.4 per cent and 0.1 per cent week-on-week, respectively, as MTNN (+6.4 per cent), CWG (+0.7 per cent), Lafarge Wapco (+0.7 per cent), and Cutix (+1.9 per cent) enjoyed price upticks.

Secure Electronic Technology Plc has reported a loss of N118m for the 2024 financial year, despite a rise in gross income. The company’s accumulated loss grew to N2.56bn, up from N2.44bn in 2023.

For the year ending December 31, 2024, the company saw its gross income increase by 24 per cent, from N3.50bn in 2023 to N4.35bn in 2024. However, high costs, including prizes, winnings, ticket expenses, and administrative costs, overshadowed this revenue growth.

Net income for 2024 was N283.62m, compared to N235.88m in 2023. However, operating expenses led to an operating loss of N82.65m, improving from the N163.39m loss recorded in 2023.

Additionally, prizes and winnings accounted for N2.44bn, while ticket costs rose to N1.60bn. Administrative expenses stood at N366.26m, down from N399.27m in 2023.

The company’s cash balance decreased by 24.6 per cent, from N69.91m in 2023 to N52.66m in 2024, raising liquidity concerns. Cash generated from operations was N29.06m, a slight improvement from N13.54m in 2023.