Cadbury Nigeria plc
By Benjamin A Ameh
The company plan to remain focus on delivering sustainable growth, efficiency and capacity under platform that they delivered profitability this year 2012 with moderate change in strategic in 2013 for higher results.
Management of the Cadbury Nigeria plc has sustained the momentum of investments in its operations as a results stock market community has started to patronized share of the company shortly after its Annual General Meetings AGM held recently in Lagos.
The company, chairman, Perterside Atedo stated that after the completion of several projects in the prior year, we raised the ante on the spate of the significant capital investments in our business in 2012. Primary among this was the breaking of ground and commencement of construction to achieve our food drinks factory extension.
The new factory extension when completed will expand our capacity and also increase operational efficiency, thereby enabling us to fulfill the strong consumer demand for our food drinks offerings
The chairman assured potential and present investors that the company is going even further to install a new Muilt-Energy Vapour Absorption Chiller which will utilize the exhaust flute gas from the new gas engine to generate chilled water/cooling tour various factories.
Atedo stress further that the company resolved to continue with its aggressive investments plans in capacity and efficiency upgrades adding it is reflection of our commitment to the long term viability of the Nigerian economy and to position us to take advantage of the opportunities in West African markets to grow our business in future.
Expanding portfolio, sustained leadership
The Cadbury boss said after the successful restaging of our two flagship brands [Bournvita and TomTom].we have brought a new global brands product called Tang which was launched in first quarter of this year 2013.
Atedo, said: “We are pleased to be in a position to pay dividend to our shareholders this year. Also we sincerely appreciate the support and patience of all our shareholders throughout the years of rebuilding the company when profits were ploughed back to sustain the business and dividends could not be paid.”
Dividends of efficiency
He attributed the ability of paid dividend this year to operational efficiencies and cost control programmes of the company, which he added, provided a strong platform to ensure that this top-line performance translated into the company’s profitability for the year under review.
The difficult and challenges in our operational environment resultantly affected our gross earnings as it declined marginally From N34.10billion in 2011 toN33.5billion in the year under review.
The profit before tax grew from N5billion in 2011 to N5.5billionin 2012 while profit after tax stood at N3.4billion
According to the Ameh 105 index’s records which shows a jump of 45 per cent in the share price of the company last week alone from N44.50 to N64.53 per share on the floor of the Nigerian Stock Exchange NSE. .
According to the company first quarter’s results, revenue of N8.362 billion in 2013, a growth of 16 per cent from N7.198 billion in preceding period of 2012. While Profit before tax and profit after tax lifted up by 185 per cent from N587 million to close on N1.676 billion and N401 million to close at N1.142 billion respectively.
Market watchers have attributed it to more demand for the shares in the company that lead to a growth of 45 per cent over last week alone.
Still with dividend, Shareholders has been without dividend for seven years as the company was struggling to return profitability from overstatements of financial accounts in the past.
Cadbury has successfully integrated its former subsidiary, Starmark Cocoa Processing Limited into one family with 12 000 tons operating capacity located in Ondo State, about 275km drive from Lagos state.
Many shareholders commended the board and management of the company for the turnaround and profitability recorded in spite of both internal and external challenges of doing business in the country.