Cadbury Nigeria rebounds to profit on higher sales, cost cutting

Struggling Cadbury Nigeria Plc jumped back into the black in the nine-months to the end of September, helped by rising sales and cost cutting.

The Bournvita maker reported a net income of ₦172m reversing a net loss of ₦64m from the same period a year earlier.

Sales in the 9-months to the end of September rose 11% to ₦26.9bn, with the growth accelerating in the third quarter by 16.1% to ₦9.4bn from ₦8.1bn.

Cadbury saw Operating Profit jump 1,675%, thanks in part to cost cutting measures it implemented which reduced selling and distribution expenses as well as admin expense by 12% and 19% respectively.

The company operates three reportable business segments – Refreshment Beverages which includes the manufacture and sale of Bournvita and 3-in1 Hot chocolate. The firm noted that revenue in that segment which contributed 58% of net sales rose 10.16%; Confectionary products which include the manufacture of Tom Tom, Buttermint, Clorets and Trident, accounting for 26% of revenue saw a 2.3% sales growth, while Intermediate Cocoa products which include the manufacture and sale of cocoa powder, cocoa butter, cocoa liquor and cocoa cake, accounting for 16% of sales grew 30.7% in the period.

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