By Tunde Osho
Cadbury Nigeria Plc has reported its full year 2017 results, with the Bournvita maker posting a net profit of ₦300m ($826,000). In the same period in 2016, the company recorded a net loss of ₦296m.
The positive performance was driven by a 10% growth in sales to ₦33bn ($90 million) from ₦29.9bn. The firm also benefited from cost savings initiatives which saw selling & distribution costs as well as administrative costs decline by 7% and 23% respectively.
Cadbury has struggled over the last few years with a myriad of challenges including rising costs, driven by the devaluation of the naira in 2016 and the ensuing environmental inflation which drove up the cost of goods sold as well as operational costs. High net finance cost also added to the company’s challenges as it grew 312% to ₦361m ($994,000) in 2017.
Cadbury said that revenue contribution for the 2017 financial year came from 55% Refreshment Beverages which includes Bournvita and Cadbury 3-in-1 hot chocolate; 31% from confectioneries such as Tom-Tom peppermint and its variants, while 14% of the revenue came from Intermediate Cocoa products which is comprised of cocoa powder, cocoa cake and cocoa butter.