Cadbury Nigeria sees lowest profit in four years on lower sales

Cadbury Nigeria, makers of chocolate and confectioneries, printed its lowest profit in four years plunging 84 per cent in 2020, on the back of lower sales caused by COVID-19 pandemic-induced lockdown which disrupted supply chain.

Profit for the period ended at N172.6 million compared to 1.07 billion recorded in 2019.

Nigerian consumer goods firms, just like their counterparts in other markets, were hit by the twin effect of coronavirus pandemic and stuttering global economy.

During the year, Cadbury’s revenue plunged 10 per cent to N35.4 billion in 2020 compared to N39.3 billion in 2019.

Domestic sales tanked 6.3 per cent to N32.2 billion while exports sales also declined by 36 per cent to N3.1 billion.

Management tried to control cost during the period as selling and distribution expenses fell 12.1 percent to N4.57 billion, while administrative expenses declined 35 percent to N1.17 billion from N1.81 billion.

The company has three main business segments, the refreshing beverages, that manufacture Bournvita, and 3-1 Hot Chocolate, which generated N21.5billion in sales down from N23.1billion in 2019, confectionery products which include TomTom and Buttermint, generated N11 billion from N11.48 billion in 2019. The intermediate cocoa products generated N2.89 billion down 38.5 per cent from 2019 levels.

Shares of Cadbury traded at N9.2 at the close of trading on Monday, gaining 2.2 percent so far this year.