Cadbury Nigeria records 4.3 billion profit in Q3 2023
By Kingsley Odii
Cadbury Nigeria Plc, a leading Fast Moving Consumer Goods (FMCG) company in Nigeria, has reported an outstanding pre-tax profit of N4.30 billion in the third quarter of 2023. This marks a significant increase of 533.4% compared to the N678.4 million recorded in the same period of the previous year.
According to the financial statements released by the company, Cadbury Nigeria Pl generated a remarkable revenue of N23.59 billion during the third quarter of 2023, representing a considerable surge of 60.9% compared to the same period in 2022.
In the nine months ending September 30, 2023, the company achieved a total revenue of N59.2 billion, which translates to a robust growth of 39% year-on-year from the N42.5 billion recorded in the corresponding period in 2022.
However, there was a setback in the company’s overall performance as it recorded pre-tax losses of N10.24 billion during the nine-month period, indicating a decline of 355% from the figures recorded during the same quarter in 2022.
Cadbury Nigeria’s Managing Director, Oyeyimika Adeboye, in a recently released statement attributed the company’s impressive net revenue growth of 39 percent compared to the previous year, to the successful execution of sales and marketing strategies. The statement also highlighted the implementation of price adjustments aimed at compensating for the increasing cost of goods sold.
However, the statement also shed light on some challenges faced by Cadbury Nigeria, including the ongoing devaluation of the Naira, foreign exchange scarcity, and rising inflation. These factors have led to a decrease in margins due to higher manufacturing costs.
Additionally, the statement acknowledged that consumer purchasing power has been significantly affected, resulting in reduced footfall across all product categories. As a result, the company’s operating profit for the period reviewed was recorded at N9.65 billion, significantly impacted by these issues.
Oyeyinka said, “Despite these challenges that have severely hampered manufacturers, we remain committed to Nigeria and will keep exploring strategies to keep afloat in a turbulent operating environment”.
With an operating profit of N3.58 billion, Cadbury Nigeria Plc achieved an impressive operating margin of 58.9% in the third quarter of 2023. This reflects a substantial increase of 4048 basis points from the 18.4% recorded during the corresponding period in 2022.
The pre-tax profit earned by the company in the third quarter of 2023 has significantly contributed to offsetting the substantial losses incurred during the second quarter of the year.
Cadbury Nigeria Plc continues to solidify its position as one of the top-performing FMCG companies in Nigeria, with robust revenue growth and a notable surge in profits during the third quarter of 2023.
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