NIGERIA – Cadbury Nigeria, a snack and confectionery arm of Mondelez International has ended the nine months to September 30 with a profit of US$474,100.80 from a loss of US$176,409.60 it reported last year in the comparable period.
According to Business Day Online, revenue for the period increased 10.6% to US$74.3 million, an increase from US$67.1 million posted in the corresponding period of 2017.
Despite adopting some cost saving strategies to reduce sales and distribution expenses, cost of sales went up to US$59.6 million attributed to rising cost of doing business in the country.
The results reflects recovery from losses it made into the year 2016.
In its 2017 results, the company posted a 10% growth in sales to US$90 million having benefited from cost savings initiatives, which saw selling & distribution costs as well as administrative costs decline by 7% and 23% respectively.
Over the past few years, it has been struggling with challenges such as rising costs, devaluation of naira in 2016 and the ensuing environmental inflation which drove up the cost of goods.
The company had rewarded shareholders with a dividend of 16 kobo per share for the 2017 financial year.
Chairman of Cadbury Nigeria, Mr. Atedo Peterside, had disclosed that the company was working on some new products, which would be launched at the appropriate time.
Peterside said the company built its business on four key pillars, such as price competitiveness, aggressive route to market initiatives and sustained consumer-driven activations.
He said the company’s top priorities in the current year is to sustain focus on quality, drive improvements in productivity and reinforce operational efficiency to maximise its competitive advantage.
The company would focus on driving growth to increase market share ahead of competition, develop an organisation of high potential talent and sustain aggressive route-to-market initiatives.