Cadbury Nigeria, in its nine-month financial books, saw profit hit N2.8 billion in September 2022, up 86.6 percent from N1.5 billion, indicating the highest in five years.
The consumer goods company recorded 41.6 percent year-on-year growth in revenue to N42.5 billion in 2022 from N30 billion in the same period of 2021.
According to CSL Research, revenue moderated slightly by 2.8 percent quarter on quarter to N14.66 billion in Q3 2022 from N15.09 billion in Q2 2021. This was driven by a -7.58 percent quarter-on-quarter decline in the revenue from the beverages category to N10.16 billion in Q3 2022 from N10.99 billion in Q2 2022.
“The 9M Revenue growth was largely driven by the beverages (Bournvita and 3-in-1 Hot Chocolate drink) business segment, which contributed 72 percent of the revenue and grew by 52 percent year on year to N30.23 billion in 9M 2022 from N19.88 billion in 9M 2021.
“Sales of TomTom, Butter mint, and other confectioneries grew 26 percent to N11.32 billion in 9M 2022 from N8.98 billion in 9M 2021 and were up q/q by 9.21 percent to N4.12 billion in Q3 2022 from N3.78 billion in Q2 2022,” analysts at CSL Research said in a note.
“However, revenue from Intermediate Cocoa Products continued to shrink, down by 16 percent (-8% in Q2) to N998 million in 9M 2022 from N1.19 billion in 9M 2021 but was up 19.5 percent q/q to N382 million in Q3 2022 from N322 million in Q2 2022. We believe that the recent increase in prices has continued to support Revenue growth,” CSL Research noted.
Domestic sales drove the revenue with N41.05 billion which indicates 96.6 percent of the total revenue while export sales contributed N1.48 billion (3.5%).
In the nine-month ended September 2022, domestic sales increased to N41.05 billion, up 43 percent from N28.7 billion in September 2021.
While export sales accounted for N1.48 billion, an 11.2 percent increase from N1.33 billion in the reviewed period.
The cost of sales rose by 40 percent to N34.16 billion from N24.4 billion in the period that ended September 2021.
Gross profit increased by 49 percent to N8.37 billion in September 2022 from N5.62 billion in September 2021.
The firm’s total equity rose to N15.5 billion, a 5.4 percent increase from N14.7 billion in the period reviewed.
Cadbury reported N4.05 billion as selling and distribution expenses in September 2022, a 19.8 percent jump from N3.38 billion in September 2021.
Cadbury’s administrative expenses increased to N1.09 billion, up 149 percent from N436.4 million in the period reviewed.
Net finance income climbed a huge 113.7 percent to N712.16 million in September 2022 from N333.2 million in September 2021.
Basic earnings per share rose to N149.97 from N80.57 in the reviewed period.