One of the Nigeria pioneer in food and beverage sector of the economy, Cadbury Nigeria Plc has reported its nine months operational results to the end of September with a revenue growth to N28.9bn from N26.9bn in the previous recordThe company with earnings rising to N648m from N172m in the same period in 2018 the profit growth was driven by a 7% rise in cost of sales to N23bn from N21.6bn and administration expense which rose marginally by 2%.
The management of the company confessed that the last three months was 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 in Q3.
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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.
The confectionary business which includes Tom Tom, Buttermint, Clorets and Trident grew by 16% or N8.3bn while contributing 29% of total sales, and the Intermediate Cocoa products segment which includes cocoa powder, cocoa butter, cocoa liquor and cocoa cake declined by 24% or N3.2bn in sales and contributed 11% of total sales.
Cadbury Nigeria is a subsidiary of US-based Mondelez International, a global manufacturer of beverage and confectionery product
