Lower Local Sales Cause 8% Drop in Cadbury Nigeria Q1 Revenue

April 21, 2020
Cadbury Nigeria

By Dipo Olowookere

In the first three months of 2020, Cadbury Nigeria Plc increased its profit after tax (PAT) by about 26 percent to N638.9 million from N506.8 million, data from its Q1 earnings revealed on Tuesday.

Also, in the period ended March 31, 2020, the company grew its profit before tax (PBT) by 26 percent to N912.8 million from N723.9 million.

However, its revenue for the period declined by 8 percent to N8.6 billion from N9.3 billion in the same period of 2019.

This reduction was attributed to the drop in domestic sales, which fell to N7.3 billion from N8.3 billion. The main reason for this was the low purchasing power of consumers in the country.

A further look by Business Post into the revenue generated by the firm showed that the decline was mainly impacted by low sales from its refreshment beverages like Bournvita and its 3-in-1 Hot Chocolate product.

However, during the period under review, Cadbury Nigeria experienced a spike in its export sales, N1.2 billion as against N945.5 million in Q1 2019.

In the first quarter of this year, the company recorded a slight decline in cost of sales, N6.3 billion in contrast to N6.9 billion in the corresponding period of last year.

Also, the gross profit fell to N2.3 billion from N2.4 billion, while other income jumped to N77.6 million from N45.9 million.

In the first three months of this year, the management cut down the selling and distribution costs to N1.1 billion from N1.3 billion as well as the administrative expenses to N339.7 million from N449.1 million.

The company further said its finance income dropped to N30.3 million from N36.6 million, while the net finance income increased to N30.3 million from N10.3 million.

Its earnings per share (EPS) improved in the first quarter of this year to 34 kobo from 27 kobo recorded in the first quarter of last year.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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