Cadbury Schweppes (the Group) announces that it has increased its shareholding in Cadbury Nigeria from 46.4% to 50.02% at a total cost of £19.7 million.
Cadbury Nigeria was incorporated in 1965 and is the market leader in sugar confectionery, gum and food beverages in Nigeria with strong market shares across all three categories. Nigeria is an important growth market for the Group within its fast-growing operations in Africa and the Middle East. The move to a majority holding will allow Cadbury Nigeria to become a key production hub for the Group in West Africa, and will enhance Cadbury Nigeria's capabilities through better access to Group technology and expertise.
As a result of Cadbury Schweppes achieving a majority holding in Cadbury Nigeria, Cadbury Nigeria will be consolidated in the group accounts of Cadbury Schweppes, having previously been accounted for as an associate.
In the year ended 1 January 2006, Cadbury Nigeria's net sales were £102 million. Underlying operating profit was £20 million. Its contribution to the Group's share of results in associates was £5 million. (All numbers are pro-forma, excluding a licensed business which was terminated in November 2005).
1. About Cadbury Schweppes
Cadbury Schweppes is the world's largest confectionery company and has a strong regional presence in beverages in North America and Australia. With origins stretching back over 200 years, today Cadbury Schweppes' products - which include brands such as Cadbury, Schweppes, Halls, Trident, Dr Pepper, Snapple, Trebor, Dentyne, Bubblicious and Bassett - are enjoyed in almost every country around the world. The Group employs around 50,000 people.
2. About Cadbury Nigeria
Cadbury Nigeria is the leading producer of sugar confectionery, gum and food beverages for the Nigerian market and the West African sub-region. Its lead brands include Tom Tom, the biggest selling candy in Africa, Bournvita and Bubba bubble gum. Other brands include Cadbury Eclairs, Cadbury Chocki, Trebor Mints, Halls Take 5 (vitaminised candy), and Creme Rollers. Cadbury Nigeria also owns a cocoa processing business, the Stanmark Cocoa Processing Company.
In the year ended 1 January 2006 Cadbury Nigeria's pro-forma net sales were £102 million and pro-forma underlying operating profit was £20 million Its pro-forma contribution to the Group's share of results in associates was a post-tax profit of £5 million. Pro-forma numbers exclude the Knorr licensed business, which was terminated in November 2005. The value of the net assets of Cadbury Nigeria on the balance sheet of Cadbury Schweppes as of 1 January 2006 was £50 million.
Including the Knorr licensed business, Cadbury Nigeria's net sales in the year ended 1 January 2006 were £122 million, underlying operating profit was £22 million, and its contribution to the Group's share of results in associates was a post-tax profit of £6 million.
Cadbury Nigeria is the 10th largest company listed on the Nigerian Stock Exchange by market capitalisation with a value of N67 billion (approximately £300 million). Its headquarters are in Lagos and it employs around 2,300 people. Further information on Cadbury Nigeria is available on its website at www.cadburynigeria.com.
Forward Looking Statements
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