Cadbury Nigeria Plc reported higher profits in the nine months to the end of September, with earnings rising to N648m from N172m in the same period in 2018.

The profit growth was driven by a 7% rise in revenue to N28.9bn from N26.9bn. The company also benefitted from a tepid rise in cost of sales to N23bn from N21.6bn and administration expense which rose marginally by 2%.

The company notes 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.

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 products.