CADBURY NIGERIA PLC Cadbury Nigeria Plc Un-audited Financial Information for the First Quarter 31 March 2024
Cadbury Nigeria Plc
Un-audited Financial Statements for the Period Ended 31 March 2024
Cadbury Nigeria Plc | |
Un-audited Financial Information | |
for the First Quarter 31 March 2024 | |
Content | Page |
Financial highlights | 2 |
Statement of financial position | 3 |
Statement of profit or loss and other comprehensive income | 4 |
Statement of changes in equity | 5 |
Statement of cashflows | 6 |
Notes to the financial statements | 7 |
Cadbury Nigeria Plc Un-audited Financial Information for the First Quarter 31 March 2024
Financial highlights
For the First Quarter Ended 31 March 2024
In thousands of naira
Un-audited | Un-audited | ||||
31 March | 31 March | ||||
2024 | 2023 | Change % | |||
Revenue | 23,695,558 | 16,563,132 | 43 | ||
Gross profit | 4,992,120 | 6,358,590 | (21) | ||
Results from operating activities | 2,759,682 | 4,553,198 | (39) | ||
(Loss)/ profit before tax | (10,456,679) | 4,933,254 | (312) | ||
(Loss)/ profit for the period | (7,319,675) | 3,453,278 | (312) | ||
Share capital | 1,140,142 | 939,101 | 21 | ||
Total equity | 5,656,877 | (6,513,678) | (187) | ||
Data per 50k share | |||||
Basic earnings/(loss) per share | (321.00) | 184.00 | (274) | ||
Net assets per share | 248 | 708 | (65) |
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Cadbury Nigeria Plc Un-audited Financial Information for the First Quarter 31 March 2024
Statement of financial position
As at 31 March 2024
In thousands of naira
Un-audited | Restated | |||
31 March | 31 December | |||
Note | 2024 | 2023 | ||
Assets | ||||
Non-current assets | ||||
Property, plant and equipment | 9 | 15,257,848 | 14,564,239 | |
Right-of-use assets | 18 | 31,170 | 35,781 | |
Intangible assets | 10 | 132,374 | 141,954 | |
Deferred taxation | 8,391,348 | 8,391,345 | ||
Total non-current assets | 23,812,740 | 23,133,319 | ||
Current assets | ||||
Inventories | 11 | 14,786,333 | 11,938,959 | |
Trade and other receivables | 12 | 7,440,731 | 7,320,449 | |
Prepayments | 13 | 1,688,335 | 583,288 | |
Cash and cash equivalents | 14 | 21,576,084 | 20,455,005 | |
Total current assets | 45,491,483 | 40,297,701 | ||
Total assets | 69,304,223 | 63,431,020 | ||
Equity and liabilities | ||||
Equity | ||||
Share capital | 1,140,142 | 939,101 | ||
Share premium | 15 | 6,932,919 | 272,344 | |
Other reserves | 15 | 23,137,168 | 3,436,348 | |
Share based payment reserve | 15 | 201,574 | 201,574 | |
Retained loss | (25,754,926) | (11,363,045) | ||
Total equity | 5,656,877 | (6,513,678) | ||
Liabilities | ||||
Non-current liabilities | ||||
Employee benefits | 16 | 752,861 | 749,435 | |
Lease liabilities | 19 | - | 1,748 | |
Total non-current liabilities | 752,861 | 751,183 | ||
Current liabilities | ||||
Borrowings | 20 | 29,111,600 | 43,214,805 | |
Current tax liabilities | 8 | (2,716,969) | 437,461 | |
Trade and other payables | 17 | 36,488,839 | 25,530,503 | |
Lease liabilities | 19 | 11,015 | 10,746 | |
Total current liabilities | 62,894,485 | 69,193,515 | ||
Total liabilities | 63,647,346 | 69,944,698 | ||
Total equity and liabilities | 69,304,223 | 63,431,020 | ||
These financial statements were approved by the Board of Directors on 30 April 2024 and signed on its behalf by:
Oyeyimika Adeboye (Managing Director)
) FRC/2013/PRO/DIR/003/00000001089
Ogaga Ologe (Finance Director)
) FRC/2013/PRO/DIR/003/00000001091
The accompanying notes on pages 7 to 27 form an integral part of these financial statements.
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Cadbury Nigeria Plc Un-audited Financial Information for the First Quarter 31 March 2024
Statement of profit or loss and other comprehensive income
For the first Quarter 31 March 2024
Un-audited | Un-audited | |||
31 March 2024 | 31 March 2023 | |||
In thousands of naira | Note | 2024 | 2023 | |
Revenue | 5 | 23,695,558 | 16,563,132 | |
Cost of sales | (18,703,438) | (10,204,542) | ||
Gross profit | 4,992,120 | 6,358,590 | ||
Other income | 6 | (11,489) | 9,827 | |
Selling and distribution expenses | (1,483,622) | (1,555,251) | ||
Administrative expenses | (737,327) | (259,968) | ||
Results from operating activities | 2,759,682 | 4,553,198 | ||
Net finance (cost)/ income | 7 | (13,216,361) | 380,056 | |
(Loss)/ profit before tax | (10,456,679) | 4,933,254 | ||
Income tax credit/(expense) | 8 | 3,137,004 | (1,479,976) | |
(Loss)/ profit for the period | (7,319,675) | 3,453,278 | ||
Other comprehensive income | - | - | ||
Total comprehensive (loss)/ income for the period | (7,319,675) | 3,453,278 | ||
Basic earnings per share (kobo) | (321.00) | 184 |
The accompanying notes on pages 7 to 27 form an integral part of these financial statements.
4
Cadbury Nigeria Plc Un-audited Financial Information for the First Quarter 31 March 2024
Statement of changes in equity
Attributable to equity owners of the company
In thousands of naira | ||||||||||||
Shared based | ||||||||||||
Share capital | Share premium | Other reserves | payment | Retained loss | Total equity | |||||||
Balance at 1 January 2024 | 939,101 | 272,344 | 3,436,348 | 201,574 | (11,363,045) | (6,513,678) | ||||||
Comprehensive income for the period | ||||||||||||
Loss for the period | - | - | - | - | (7,319,675) | (7,319,675) | ||||||
Other Comprehensive income | - | - | - | - | - | - | ||||||
Total comprehensive loss for the period | - | - | - | - | (7,319,675) | (7,319,675) | ||||||
Transactions with owners, recorded directly in equity | ||||||||||||
Issue of Shares | 201,041 | 6,660,575 | - | - | 6,861,616 | |||||||
*Prior year adjustment | (7,072,206) | (7,072,206) | ||||||||||
Intercompany loan forgiveness | 19,700,820 | 19,700,820 | ||||||||||
Total transactions with owners | 201,041 | 6,660,575 | 19,700,820 | - | (7,072,206) | 19,490,230 | ||||||
Balance at 31 March 2024 | 1,140,142 | 6,932,919 | 23,137,168 | 201,574 | (25,754,926) | 5,656,877 | ||||||
Shared based | ||||||||||||
Share capital | Share premium | Other reserves | payment | Retained loss | Total equity | |||||||
In thousands of naira | ||||||||||||
Balance at 1 January 2023 | 939,101 | 272,344 | 3,436,348 | 176,896 | 8,477,939 | 13,302,628 | ||||||
Comprehensive income for the period | ||||||||||||
Loss for the year | - | - | - | - | (19,089,704) | (19,089,704) | ||||||
Other Comprehensive income | - | - | - | - | - | - | ||||||
Total comprehensive income for the period | - | - | - | - | (19,089,704) | (19,089,704) | ||||||
Transactions with owners, recorded directly in equity | ||||||||||||
Dividends to equity holders | - | - | - | - | (751,281) | (751,281) | ||||||
Equity settled share based payment transaction | - | - | - | 24,678 | - | 24,678 | ||||||
Total transactions with owners | - | - | - | 24,678 | (751,281) | (726,603) | ||||||
Balance at 31 December 2023 | 939,101 | 272,344 | 3,436,348 | 201,574 | (11,363,045) | (6,513,678) |
The accompanying notes on pages 7 to 27 form an integral part of these financial statements.
*Prior year adjustment relates to accrued interest on short term bank loans not previously recognized in the 2023 audited financial statements.
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Cadbury Nigeria Plc Un-audited Financial Information for the First Quarter 31 March 2024
Statement of cash flows
For the First Quarter 31 March 2024 | |||
In thousands of naira | |||
Un-audited | Audited | ||
In thousands of naira | 31 March 2024 | 31 December 2023 | |
Cash flow from operating activities | |||
(Loss)/profit before tax | (10,456,679) | (28,157,034) | |
Adjustments for: | |||
Depreciation of property, plant and equipment | 474,227 | 1,623,850 | |
Impairment of property, plant and equipment | - | 1,399,445 | |
Depreciation of right of use assets | 4,610 | 18,372 | |
Amortisation of intangible assets | 9,580 | 41,613 | |
Equity settled share-based payment transaction | - | 24,678 | |
Write-back of impairment for receivables | - | (3,509) | |
Finance income | (170,981) | (2,262,684) | |
Exchange gain on foreign currency cash and cash equivalents | 1,216,019 | (1,116,389) | |
Loss on sale of property, plant and equipment | 11,794 | 2,527 | |
Accretion of interest on lease liabilities | 271 | 1,144 | |
Interest on borrowings | 1,208,830 | 1,357,841 | |
Exchange loss on Intercompany loan | 12,402,036 | 6,896,616 | |
Exchange loss on Import finance facilities | 1,087,505 | 20,431,495 | |
Expense for employee benefits | 3,426 | 246,162 | |
5,790,638 | 504,127 | ||
Change in: | |||
Increase in inventories | (2,847,374) | (25,793) | |
Increase in trade and other receivables | (120,283) | (2,171,540) | |
(Increase)/decrease in Prepayments | (1,105,047) | 488,527 | |
Increase in trade and other payables | 11,599,852 | 6,459,189 | |
Cash generated from operating activities | 13,317,786 | 5,254,510 | |
Employee benefit paid | - | (73,611) | |
VAT paid | (641,516) | (2,040,168) | |
Income tax paid | (17,426) | (343,501) | |
Net cash generated from operating activities | 12,658,844 | 2,797,230 | |
Cash flow from investing activities | |||
Interest received | 170,981 | 2,262,684 | |
Proceeds from sale of property, plant and equipment | 24,095 | 4,434 | |
Acquisition of property, plant and equipment | (1,203,725) | (3,700,256) | |
Net cash used in investing activities | (1,008,649) | (1,433,138) | |
Cash flow from financing activities | |||
Dividends paid | - | (124,717) | |
Additions to intercompany loan | 34,420,000 | 6,196,000 | |
Addition - Import finance facilities | 2,645,447 | 30,824,426 | |
Repayment - Intercompany loan | (15,424) | (14,902,456) | |
Repayment - Import finance facilities | (39,114,325) | (31,449,577) | |
Intercompany loan and interest conversion to Equity | (7,036,454) | - | |
Issue of Shares | 6,861,616 | - | |
Repayment of lease liabilities | (1,750) | (16,930) | |
Net cash used in financing activities | (2,240,890) | (9,473,254) | |
Net (decrease)/increase in cash and cash equivalents | 9,409,304 | (8,109,162) | |
Cash and cash equivalents at 1 January | 20,455,005 | 27,447,778 | |
Prior year adjustment on retained earnings | (7,072,206) | - | |
Exchange gain on foreign currency cash and cash equivalents | (1,216,019) | 1,116,389 | |
Cash and cash equivalents at 31 December | 21,576,084 | 20,455,005 |
The accompanying notes on pages 7 to 27 form an integral part of these financial statements.
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Cadbury Nigeria Plc Un-audited Financial Information for the First Quarter 31 March 2024
Notes to the financial statements
1 Reporting entity
Cadbury Nigeria Plc is a company domiciled and incorporated in Nigeria 0n 9 January 1965. The address of the Company's registered office is Lateef Jakande Road, Ikeja, Lagos. The Company is principally engaged in the manufacture and sale of branded fast moving consumer goods mostly to the Nigerian market, but also for exports.
The Company's brands fall into three principal categories, namely refreshment beverages, confectionery and intermediate cocoa products. Cadbury Bournvita and 3-in-1 Hot Chocolate are the refreshment beverages, TomTom, Candy Caramel, Candy Coffee, Buttermint and Clorets gum are the confectionery products, Bournvita Biscuit is the biscuit category while Cocoa Butter is a key product in the intermediate cocoa category. On 1 April 2013, the Company put on hold the production and sale of Bournvita Biscuits.
Cadbury Nigeria Plc is owned 74.97% (2022: 74.97%) by Cadbury Schweppes Overseas Limited ("CSOL"), incorporated in the United
Kingdom while CSOL is owned by Mondelez International and 25.03% (2022: 25.03%) by a highly diversified spread of individual and institutional shareholders.
2 Basis of preparation
-
Statement of compliance
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS and in the manner required by the Companies and Allied Matter Act (CAMA), 2020 and the Financial Reporting Council of Nigeria Act 2023. The financial statements comply with IFRS as issued by the International Accounting Standards Board (IASB). They were authorized for issue by the Company's Board of Directors on __ March 2024. - Basis of preparation
These financial statements have been prepared in accordance with the going concern assumption under the historical cost basis except for the following; - Equity-settledshare-based payment arrangements - fair value
- Defined benefit obligations - present value of the obligation
- Inventory - lower of cost or net realizable value
- Lease liabilities - present value of the obligation
The methods used to measure fair values are discussed further in note 4.
-
Functional and presentation currency
These financial statements are presented in Naira, which is the Company's functional currency. All financial information presented in Naira has been rounded to the nearest thousands, except when otherwise indicated.
- Use of estimates and judgments
The preparation of the financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
Information about assumptions, estimation uncertainties, and critical judgments in applying accounting policies that have a significant effect on the amounts recognized in the financial statements are described below;
Note 13 - Impairment assessment of property, plant and equipment Note 13 - Estimated useful lives of property, plant and equipment Note 15 - Deferred taxation
Note 15 - Net realisable value of inventory Note 21 - Employee benefits
Note 22 - Share-based payment plan
Note 26 - Provision of expected credit losses (ECL) on trade receivables
Note 26 - Provision of expected credit losses (ECL) on related parties receivables Note 28 - Contingent liabilities and commitments
Deferred taxation-key assumptions
Deferred tax is provided using the liability method on temporary differences at the reporting date between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecgonised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
7
Cadbury Nigeria Plc Un-audited Financial Information for the First Quarter 31 March 2024
Notes to the financial statements (Continued)
2 Basis of preparation (continued)
-
Use of estimates and judgments (continued)
Provision of expected credit losses (ECL) on trade receivables
The Company uses a provision matrix to calculate ECLs for trade receivables. The provision rates are based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by geography, product type, customer type and rating, and coverage by letters of credit and other forms of credit insurance).The provision matrix is initially based on the Company's historical observed default rates. The Company will calibrate the matrix to adjust the historical credit loss experience with forward- looking information. For instance, if forecast economic conditions (i.e., gross domestic product) are expected to deteriorate over the next year which can lead to an increased number of defaults in the manufacturing sector, the historical default rates are adjusted. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Company's historical credit loss experience and forecast of economic conditions may also not be representative of customer's actual default in the future.
Provision of expected credit losses (ECL) on related parties receivables
The Company applies the IFRS 9 simplified approach to measuring expected credit losses (ECL), which uses a lifetime expected loss allowance for all related parties receivables. In applying the provision matrix, the Company estimates the ultimate write offs for a defined population of relate parties receivables. A loss ratio is calculated according to the ageing profile of the related parties receivables by applying the historic write offs to the payment profile of the population adjusted to reflect current and forward looking information on macroeconomic factors. The Company exercises significant judgements in the inputs, assumptions and techniques for estimating ECL, default and credit impaired assets.
Estimated useful lives of property, plant and equipment
Property, Plant and Equipment are depreciated over their useful lives. The Company estimates the useful lives of property, plant and equipment based on the period over which the assets are expected to be available for use. The estimation of the useful lives are based on technical evaluations carried out by experts and those staff with knowledge of the assets and experience with similar assets. Estimates could change if expectations differ due to physical wear and tear and technical or commercial obsolescence. It is possible, however, that future results of operations could be materially affected by changes in the estimates brought about by changes in factors mentioned above. The amounts and timing of expenses for any period would be affected by changes in these factors and circumstances. A reduction in the estimated useful lives of the plant and machinery would increase expenses and decrease the value of property, plant and equipment.
Impairment assessment of property, plant and equipment
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available unobservable inputs that are developed based upon the best information available under the circumstances, which might include the Company's own data less incremental costs of disposing of the asset. The value in use calculation is based on a discounted cash flow (DCF) model. The cash flows are derived from the budget and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the performance of the assets of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.
Net realisable value of inventory
Net realisable value of inventory is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated cost necessary to make the sale. The Company estimate selling price of inventory based on current market condition, including supply and demand mechanism, pricing trends and macro-economics conditions that might affect the selling price of the inventory. The Company also evaluate historical sales data and patterns to understand the inventory performance in the past to provide insights to likely selling price in the future, adjusted for factors such as inventory damage, obsolescene, change in technology. The Company estimated selling cost include marketing expenses, commision on sales, shipping costs and other incidential cost directly related to the sale. If the inventory require further processing or manufacturing before it can be sold, estimated cost of completion will include material cost, labour cost and overhead necessary to complete the inventory.
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Cadbury Nigeria Plc Un-audited Financial Information for the First Quarter 31 March 2024
Notes to the financial statements (Continued)
2 Basis of preparation (continued)
-
Use of estimates and judgments (continued) Employee benefits (Long service awards)
Employee benefit is other long-term employment benefit plan (long service awards) other than a defined contribution plan and defined benefit plan. The Company's net obligation in respect of long service awards is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior years and that benefit is discounted to determine its present value. In determining the liability for employee benefits under the long service awards, consideration is given to future increases in salary rates and the Company's experience with staff turnover.
The recognized liability is determined by an independent actuarial valuation every year using the projected unit credit method. Actuarial gains and losses arising from differences between the actual and expected outcome in the valuation of the obligation are recognized fully in profit or loss.
The effect of any curtailment is also charged in full in profit or loss immediately the curtailment occurs. The discount rate is the yield on Federal Government of Nigeria issued bonds that have maturity dates approximately the terms of the Company's obligation. Although the scheme is not funded, the Company ensures that adequate arrangements are in place to meet its obligations under the scheme.
Share-based payment transactions
The Company participates in a group share-based payment arrangement instituted by its ultimate parent, Mondelēz International. Certain employees of the Company participate in this arrangement which is based on the shares of Mondelēz International. The grant date fair value of share-based payment awards granted to employees is recognized as an employee expense, with a corresponding increase in equity, over the years that the employees unconditionally become entitled to the awards.
The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized as expense is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. For share-based payment awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such conditions. They are presented as employee expenses and included in administrative expenses in the statement of profit or loss.
Share-based payment arrangements in which the Company receives goods or services and has no obligation to settle the share-based payment transaction are accounted for as equity-settledshare-based payment transactions, regardless of the equity instrument awarded.
Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the statement of financial position cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the discounted cash flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions relating to these factors could affect the reported fair value of financial instruments.
Contingent liabilities and commitments
A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company, or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or the amount of the obligation cannot be measured with sufficient reliability.
Contingent liabilities are only disclosed and not recognized as liabilities in the statement of financial position. If the likelihood of an outflow of resources is remote, the possible obligation is neither a provision nor a contingent liability and no disclosure is made.
The accounting policies set out below have been applied consistently to all years presented in these financial statements.
3 Material accounting policies
-
Foreign currency transactions
Transactions denominated in foreign currencies are translated and recorded in Naira at the actual exchange rates as of the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated at the rates of exchange prevailing at that date. The foreign currency gain or loss on monetary items is the difference between amortized cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period, and the amortized cost in foreign currency translated at the exchange rate at the end of the reporting period. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated to the functional currency at the exchange rate at the date that the fair value was determined.
Foreign currency differences arising on translation are recognized in net finance cost (see note 7). Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
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Cadbury Nigeria plc published this content on 02 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 08:26:10 UTC.
