In the nine months to the end of September, Cadbury Nigeria Plc reported higher profits with earnings rising from N172m to N648m in the same period in 2018.
This was as a result of a 7% rise in revenue from N26.9bn to N28.9bn. The company also benefited from a tepid rise in cost of sales from N21.6bn to N23bn as well as administration expense which rose marginally by 2%.
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The company noted that the last three months was particularly challenging as revenue growth was less than 1%, while cost of sales jumped 12%. Gross Profit plunged 31%, driven by the higher cost of sales. The company declared a loss of N22m in Q3.
By segment, the company recorded a 12% sales growth in its refreshment beverages which includes its flagship Bournvita and the 3-In-1 hot chocolate brands. The segment contributed 60% of total sales or N17.3bn.
The confectionary business which includes Tom Tom, Buttermint, Clorets and Trident grew by 16% or N8.3bn while contributing 29% of total sales, and the Intermediate Cocoa products segment which includes cocoa powder, cocoa butter, cocoa liquor and cocoa cake declined by 24% or N3.2bn in sales and contributed 11% of total sales.
Cadbury Nigeria is a subsidiary of US-based Mondelez International, a global manufacturer of beverage and confectionery products.
Juliet Ekwebelam
