Profit dropped by 98% to N28million
- Cadbury Nigeria Plc. is a leading player in the Fast
Moving Consumer Goods (FMCG) sector in Nigeria. The company recently released
its Q3:2015 results in which revenue fell by 10% to N21bn from N23bn 2015,
profit before tax fell by 98% to N40mn from N1.6bn while profit after tax also declined
by 98% to N28mn from N1.6bn underpinned by a declined in finance income (63% to
N114mn from N308bn, Q3:2015) for the period under review.
- Stiffer competition within the food and beverage
segment and decline of the macroeconomic indicators (such as Inflation rate: 9.3%,
high interest rate and devaluation in naira are taking its toll on Cadbury’s
performance.
- Cadbury Nigeria Plc. is currently trading at N22.10 per share. We place a SELL rating on its’ shares with a 12 month price targets of N20 per share.
Credit: AAML
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