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.
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