NIGERIA – Cadbury Nigeria Plc on Wednesday reported a decline of 98 per cent in its profit for the nine months ended September 30, 2015.
According to the results, Cadbury posted a revenue of N21 billion in 2015, down by 10 per cent compared to the N23.3 billion in the corresponding period of 2014. Cost of sales was flat at N14.6 billion, while sales, marketing, distribution/administrative and other expenses remained at N6.4 billion.
Other income fell by 63 per cent from N254 million to N93.4 million, while finance income dipped same margin from N308.537 million to N114.2 million.
Consequently, profit before tax plunged by 98 per cent from N2.4 billion to N40.789 million. Although taxation was reduced by 98 per cent, profit after tax stood at N28.553 million, showing a decline of 98 per cent as against N1.652 billion recorded in 2014.
Cadbury has been experiencing dwindling fortunes due to the challenging operating business environment.
However, Chairman, Cadbury Nigeria Plc, Mr. Atedo Peterside, had assured shareholders that the company would focus on four key strategic initiatives to realize its growth ambitions this year, after taking major hits in sales and profit in 2014.
According to him, the company would concentrate efforts at increasing its market share in the powdered-drink and candy categories while investing in innovation and enhancement of its product portfolio.
He said the company was able to mitigate the impact of the tough operating environment of 2014 by continuing to improve its operational efficiencies.
“One of the major strengths of our company has been operational efficiency, as aligned with global best practices. Constant improvements in operational efficiency helped us to offset difficulties in the operating environment,” Peterside said.
The company had expressed confidence in Roy Naaman, who resumed as managing director of Cadbury Nigeria on January 1, 2015. He was expected to help consolidate the company’s market share and tap into other expanding markets in West Africa.
Cadbury Nigeria had stated that Naaman as a highly experienced brand professional would lead the snacks group’s expansion in West Africa and deliver consistent and strong profit to shareholders.
“In Naaman, we are very pleased to gain a highly experienced leader, with a strong track record in driving sustained and profitable growth.
In his previous role, Roy was instrumental in spurring business expansion in southern Africa and the Caucasus. He is a most valuable addition to our company,” the company had said.
Cadbury posts N250m loss in six months