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.

Leave a Reply

Your email address will not be published. Required fields are marked *