Cadbury Nigeria posts 26% rise in first quarter profit despite 8% decline in revenue

NIGERIA – Cadbury Nigeria, subsidiary of snack and confectionery firm, Mondelez International has released its unaudited financial statement for the first quarter period ended March 31st, 2020.

According to the interim financial statement, the company’s profit before tax for the period rose by 26% to N912.7 million (US$2.5m) compared to N723.9 million (US$2m) achieved in Q1 2019.

The Bournvita maker’s profit after tax equally rose by 26% to N638.9 million (US$1.7m) from N506.7 million (US$1.4m) recorded in the same period in 2019.

However, the company’s revenue for the quarter declined by 8% to N8.5 billion (US$23.5m) from N9.2 billion (US$25.5m) of the comparable Q1 period of 2019.

The reduction was as a result of drop in domestic sales, which fell to N7.3 billion (US$20.2m) from N8.3 billion (US$23m) due to the low purchasing power of consumers in the country.

Cadbury Nigeria experienced a spike in its export sales, N1.2 billion (US$3.3m) as against N945.5 million (US$2.6m) in Q1 2019 in the period under review.

Gross profit declined to N2.3 billion (US$6.3m) from N2.4 billion (US$6.6m), while other income jumped to N77.6 million (US$0.215m) from N45.9 million (US$.12m).

The company’s cost of sales by 9% to N6.2 billion (US$17.1m) against N6.9 billion (US$19.1m) recorded in Q1 2019

The management cut down the selling and distribution costs to N1.1 billion (US$3m) from N1.3 billion (US$3.6m) as well as the administrative expenses to N339.7 million (US$0.94m) from N449.1 million (US$1.24m) in Q1 2019.

The company further indicated that its finance income dropped to N30.3 million (US$84,000) from N36.6 million (US$101,000), while the net finance income increased to N30.3 million (US$84,000) from N10.3 million (US$28,000).

Its brands fall into three principal categories, namely: refreshment beverages, confectionary and intermediate cocoa products.

Cadbury Bournvita and Cadbury 3-in-1 hot chocolate are the refreshment beverages, Tom Tom, Buttermint and Clorets gum are the Confectionery products while Cocoa Butter is a key product in the intermediate cocoa category.