Cadbury Nigeria ends 2016 Financial Year with a loss



Cadbury Nigeria Plc, the sole makers of one of Nigeria’s beverage drinks, Bournvita announced its full year results for 2016 financial year, as it ended the year with a net loss of N296m, compared to the N1.2bn profit made in 2015.

Having witnessed declining sales and low profitability in its ventures in the last few years; the company said that revenue grew at 8% in the year ended to nearly N30billion. The company which recorded N28bn in sales as at 2015. The sales growth in addition to a tax credit of N266m helped narrow the company’s losses from N842m in the 9-months to December.

Trying to battle with several challenges ranging from inflation of 17.9% as at September, created by a weakened economy which invariably affected consumer purchasing power, also the devaluation of the naira in June which increased the cost of goods to 22% also in 2016, and above all intense competition from other household beverage producers.

Cadbury hired a new Managing Director, Amir Shamsi in January to replace the departing Roy Naaman who was on the job for two years. The company is hoping to reverse its declining fortunes.

Comments are closed.