The company reported that it still carries forex-related loans with dollar-denominated interest rate components that triggered the losses.

“The depreciation of the Naira from about N460/$1 to about N790/$1 triggered the forex losses,” Cadbury Nigeria said.

The company added that it was able to grow its top-line revenues by about 26% to N19 billion while gross profit also rose 176% to N7.2 billion.

However, despite the losses arising from the extraordinary forex losses, Cadbury posted an operating profit of N1.5 billion, representing a 64% increase yearly.

Cadbury’s Q2 earning include: revenue for the quarter was N19.04 billion compared to N15.09 billion in the corresponding quarter of 2022. Cost of Sales marginally declined by 5.21% to N11.82 billion from N12.47 billion recorded in the same period last year. Gross profit increased significantly by 175.57% to N7.22 billion from N2.62 billion reported last year. Pre-tax loss for the quarter declined to N17.9 billion from N800 million profit in Q2 2022 (due to the impact of fx unification on dollar-related loans). Cash flow equivalent for the half year ended 30th June 2023 was N39.17 billion, an increase of 88% from N20.84 billion recorded in the same period last year.