Year ends with loss for Cadbury Nigeria
Cadbury Nigeria Plc, the Bournvita maker on Tuesday reported its full year results for the 2016 financial year, ending the year with a net loss of N296m, compared to N1.2bn profit in 2015.
The company which has been experiencing declining sales and low profitability in the last few years said that revenue grew 8% in the year ended to nearly N30bn. In 2015, the company recorded N28bn in sales. The sales growth in addition to a tax credit of N266m helped narrow the company’s losses from N842m in the 9-months to December.
The firm has been facing multiple challenges – notably inflation of 17.9% as of September, brought about by a weakened economy which has affected consumer purchasing power. Making matters worse was the naira devaluation in June which increased the cost of goods sold by 22% in the year 2016; then there is competition from other manufacturers – Nestle’s Milo, Ovaltine, among others.
Cadbury hired a new Managing Director, Amir Shamsi in January to replace the departing Roy Naaman who was on the job for two years. The company is hoping to reverse its declining fortunes.