Cadbury Nigeria Plc, a subsidiary of Mondelez International, has announced its financial results for the third quarter of 2024, recording a revenue of N89.5 billion. This represents a significant increase of 51% over the N59.2 billion declared in the third quarter of 2023.
Despite the impressive revenue growth, the company’s gross profit dropped by 9% from N16.3 billion recorded in the third quarter of 2023 to N14.7 billion in the period under review.
Additionally, Cadbury Nigeria made a loss of N11.8 billion in Q3 2024, compared to N10.2 billion in Q3 2023, representing a 16% increase.
According to a statement by the company, 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.
The company reaffirmed its commitment to doing business in Nigeria, despite the current challenging operating environment.
The Managing Director of Cadbury Nigeria, Oyeyimika Adeboye, attributed the company’s resilience to its ability to innovate and adapt to the challenging business environment.
“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,” Adeboye said.
“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 added.
In a bid to mitigate some of the challenges facing the company, Cadbury Nigeria’s shareholders had earlier this year approved the conversion of an outstanding intercompany loan of $7.72 million (₦7,036 billion) owed to its majority shareholders, Cadbury Schweppes Overseas Limited, to equity, at an Extraordinary General Meeting, in Lagos.
The move is expected to help the company reduce its debt burden and improve its financial performance in the long run.
Despite the challenges facing the company, Cadbury Nigeria remains committed to its operations in Nigeria and is exploring innovative ways to navigate the challenging business environment.
Cadbury Nigeria’s financial results for the third quarter of 2024 reflect the company’s resilience and ability to adapt to the challenging business environment in Nigeria.
Despite the decline in gross profit and increase in loss, the company’s revenue growth of 51% is a testament to its ability to innovate and remain competitive in the market.
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