Cadbury Nigeria appoints two new Non-Executive Directors

NIGERIA – Cadbury Nigeria, subsidiary of snack and confectionery firm Mondelez International has announced the appointment of Mrs Kofoworola Akinkugbe and Ms. Nadia Mohamme as Non-Executive Directors.

These appointments, according to Naira Metrics will be effective 1st January 2021, subject to ratification at the company’s next Annual General Meeting (AGM) in 2021.

Mrs. Kofoworola Akinkugbe is the founder of Interface Technologies (1998), SecureID Limited (2005), and SecureCard Manufacturing (2012).

She sits on the Boards of the Manufacturers’ Association of Nigeria, Fintech Association of Nigeria Sokoa Chair Centre Limited, ICS Outsourcing Limited, Lifeworth Medicare Limited and African Missions L/Gte.

While Ms. Nadia Mohamed is the Marketing Director of Mondelez International (Africa). She serves as a Gerety Awards Jury member and as a Non-Executive Director for two non-profit organisations, most notably representing Africa as a Global Shaper at the World Economic Forum and currently on the board of the Women’s Business Network for the UNHCR, the UN Refugee Agency.

Meanwhile, in the company’s recently released Q3’2020 financial results (July – August) it declared a revenue growth, after two consecutive quarters of revenue decline of 28% year-on-year (YoY) and 8% YoY in Q2’2020 and Q1’2020, respectively.

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In Q3’2020, revenue grew by 4% from N9.46bn (US$24.7m) in Q3’2019 to N9.88bn (US$25.9m), propelled by increased market penetration and stronger-than-expected market demand.

Cadbury Nigeria’s operating profit stood at N420.40mn (US$1.1m), compared to an operating loss of N76.84mn (US$202,000) in Q3’2019. Profit before tax significantly rose from a loss of N31.30mn (US$82,000) in Q3’2019 to a profit of N453.89mn (US$1.19m) in Q3’2020.

In a similar trend, the snack manufacturer’s profit after tax improved from a loss of N21.91mn (us$57,650) to a profit of N317.72mn (us$836,000).

Cadbury Nigeria’s cost margin improved by 200 basis points from 82% in Q3’2019 to 80% in Q3’2020, attributed to lower raw input prices.

As a result of a lower cost margin in Q3’2020, Cadbury Nigeria’s gross profit grew by 15% from N1.72bn (US$4.5m) in Q3’2019 to N1.97bn (US$5.1m) in Q3’2020.

Operating expense declined by 14% from N1.80bn (US$4.7m) in Q3’2019 to N1.56bn (US$4.1m) in Q3’2020, driven by a 46% decline in administrative expense from N540.31mn (US$1.42m) in Q3’2019 to N290.08mn (US$763,300) in Q3’2020.

Furthermore, selling and distribution expense was relatively managed, as it grew by just 1% from N1.26bn (US$3.31m) in Q3’2019 to N1.27bn (US$3.34m) in Q3’2020.

Therefore, the cost savings in Q3’2020, in combination with a 15% growth in operating income, resulted in a 647% growth in operating profit.

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