Cadbury Nigeria posts 277% rise in third quarter profit driven by growth in revenue

NIGERIA – Cadbury Nigeria Plc, subsidiary of snack and confectionery firm Mondelez International reported a 277% jump in profits to N648m (US$1.8m) in the nine months to end of September 2019 from N172m (US$0.475m) reported in the same period in 2018.

The profit growth was driven by a 7% rise in revenue to N28.9bn (US$79.9m) from N26.9bn (US$74.4m).

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The company also benefitted from a tepid rise in cost of sales to N23bn (US$63.6m) from N21.6bn (US$59.7m) and administration expense which rose marginally by 2%.

Cadbury Nigeria noted that the last three months were 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 (US$60,000) in Q3, reports BeverageIndustryNG,

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 (US$47.8m).

The confectionery business which includes Tom Tom, Buttermint, Clorets and Trident grew by 16%, N8.3bn (US$22.9m) while contributing 29% of total sales.

The Intermediate Cocoa products segment which includes cocoa powder, cocoa butter, cocoa liquor and cocoa cake declined by 24% i.e. N3.2bn (US$8.8m) in sales and contributed 11% of total sales.

The company has continued to prioritise on quality, drive improvements in productivity and reinforce operational efficiency to maximise its competitive advantage in its bid of developing an organisation of high potential talent.

Cadbury UK Limited the parent company of Cadbury Nigeria Plc, has released a ‘White Christmas’ special edition of their ‘Dream’ branded chocolate block.

Filled with raspberries, rice crisps and sliced almonds, the chocolate bar will be available in select stores i.e. Woolworths, Coles and some independent retailers.

Planning for the future, the chocolate brand has already announced its Easter range for 2020 to include large tubs of Creme Eggs and Mini Eggs.

Other treats feature a Peter Rabbit chocolate bar made from orange mousse, an orange chocolate Bournville Easter egg and a coffee-flavoured ‘Choca-Latte’ egg.

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