Cadbury Nigeria Plc released its 2022 Q3 results reporting a profit of N474.877 million, a 76.61% decline year-on-year.
The result is on the back of an inflationary year, occasioned by supply chain disruptions and rising energy costs, where FMCG companies have had to deal with rising production, marketing, and distribution expenses.
The unaudited results also showed that the Q3 22-on-year decline in profit was driven by lower margins as cost of sales soared. Specifically gross margins fell to 17.1% during the quarter compared to 29.5% in the same period one year ago.
Revenue pop: a closer look at the results showed that revenue rose by 27.23% to N14.663 billion in Q3 2022 compared to N11.525 billion during the same period last year.
The results also showed that the revenue growth was driven by a rise in revenue from the company’s two major product lines; Refreshment Beverages and Confectionery.
Most consumer goods companies have been able to report higher sales due to upward price adjustments. We believe this is also the case with Cadbury.
Most of the revenue growth recorded was however gobbled up by rising direct cost and operating expenses.
Other key financial highlights