Cadbury Nigeria Plc, a subsidiary of Mondelez International, has reaffirmed its commitment to doing business in the country, despite the current challenging operating environment.
The company’s top brands in Nigeria are Bournvita, Hot Chocolate 3 in 1, TomTom, Buttermint, and Clorets chewing gum. In a statement,
Oyeyimika Adeboye, MD/ CEO, said: “We are not insulated against the harsh business environment in Nigeria that has impacted negatively on the profitability of many companies across virtually all sectors of the economy.
. “Despite this, we would like to reassure our stakeholders, particularly our shareholders and customers, that we will continue to remain innovative and resilient to help us better manage these challenges.
We are here for the long haul.”Adeboye noted that the naira devaluation caused by the persistent forex crisis and high cost of operation have continued to impact negatively on its profitability, despite growth in turnover.
“Cadbury Nigeria had taken steps to mitigate some of these challenges;
its shareholders had earlier this year, approved the conversion of an outstanding intercompany loan of $7.718 million (₦7,036 billion) owed to its majority shareholders, Cadbury Schweppes Overseas Limited, to equity, at an Extraordinary General Meeting, in Lagos.
Meanwhile, Cadbury Nigeria announced a revenue of N89.5 billion for the third quarter of 2024. This represents an increase of 51 percent over the N59.2 billion it declared in the third quarter of 2023.
The company’s gross profit dropped by nine percent from N16.3 billion recorded in third quarter of 2023, to N14.7billion in the period under review, while it made a loss of N11.8 billion in Q3 2024 compared to N10.2billion in Q3 2023, which is a 16 percent increase.