Home News Cadbury borrows $15 million in intercompany loans

Cadbury borrows $15 million in intercompany loans

by Good News

Meals and Beverage firm, Cadbury Nigeria Plc confirmed it took an intercompany mortgage of $15 million from its dad or mum firm Cadbury y Schweppes In one more country Diminutive.

The firm disclosed this in its 2021 audited monetary conception published on the receive set apart of the Nigerian Substitute.

The mortgage elevated Cadbury’s total borrowing to about N10.4 billion up from right N3.45 billion a twelve months earlier. The mortgage used to be got within the third quarter of 2021.

The Firm is a subsidiary of Mondelēz International incorporated within the US of America. Mondelēz International, through Cadbury Schweppes In one more country Diminutive, holds 74.97% of the issued and entirely paid piece capital of the firm.

Cadbury Nigeria additionally reported the amount attributable to Cadbury Schweppes In one more country Ltd on the


discontinuance of the period used to be N867.1 million for 2019 and 2020 Dividend (2020: N632.6 million for 2019 dividend).

What the mortgage is for

A cursory review of the money circulation commentary of the firm displays the firm is but to utilize the proceeds of the mortgage as its receive cash steadiness used to be N17.8 billion on the tip of the twelve months.
Nevertheless, we suspect the mortgage will doubtlessly be feeble to pay wait on its associated occasion loans which contains a $22 million syndicated mortgage from two native banks that worth Libor +6% and Libor+ 7% respectively.
Cadbury additionally has about N2.2 billion in associated-occasion loans from one more of its sister firm Cadbury Enterprises Pte Ltd (Singapore).
No topic the develop in loans, the firm had a receive finance earnings of N606.4 million in 2021. It’s no longer going that it could perhaps presumably be in a location to set a receive finance earnings this twelve months.

Fundamentals

Cadbury’s 2021 outcomes saw a tumble in profit after tax going from N868 million in 2020 to N449 million in 2021.
Cadbury has found it lively to set consistent profits over the years. It additionally declared a dividend of N940.5 million this twelve months (50 kobo per piece compared to 18 kobo per piece the twelve months sooner than.
The piece impress closed at N9 per piece.

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