Meals and Beverage firm, Cadbury Nigeria Plc confirmed it took an intercompany mortgage of $15 million from its mum or dad firm Cadbury y Schweppes Abroad Restricted.
The corporate disclosed this in its 2021 audited monetary assertion printed on the web site of the Nigerian Change.
The mortgage elevated Cadbury’s whole borrowing to about N10.4 billion up from simply N3.45 billion a yr earlier. The mortgage was obtained within the third quarter of 2021.
The Firm is a subsidiary of Mondelēz Worldwide included in the USA of America. Mondelēz Worldwide, by means of Cadbury Schweppes Abroad Restricted, holds 74.97% of the issued and absolutely paid share capital of the corporate.
Cadbury Nigeria additionally reported the quantity as a result of Cadbury Schweppes Abroad Ltd on the
finish of the interval was N867.1 million for 2019 and 2020 Dividend (2020: N632.6 million for 2019 dividend).
What the mortgage is for
- A cursory overview of the money circulate assertion of the corporate reveals the corporate is but to make the most of the proceeds of the mortgage as its internet money steadiness was N17.8 billion on the finish of the yr.
- Nevertheless, we suspect the mortgage will most likely be used to pay again its associated occasion loans which features a $22 million syndicated mortgage from two native banks that price Libor +6% and Libor+ 7% respectively.
- Cadbury additionally has about N2.2 billion in related-party loans from one other of its sister firm Cadbury Enterprises Pte Ltd (Singapore).
- Regardless of the rise in loans, the corporate had a internet finance revenue of N606.4 million in 2021. It’s unlikely that it will likely be capable of keep a internet finance revenue this yr.
- Cadbury’s 2021 outcomes noticed a drop in revenue after tax going from N868 million in 2020 to N449 million in 2021.
- Cadbury has discovered it troublesome to keep up constant earnings through the years. It additionally declared a dividend of N940.5 million this yr (50 kobo per share in comparison with 18 kobo per share the yr earlier than.
- The share value closed at N9 per share.