Cadbury Nigeria has reported profits of N68.2m ($0.19m) for the six months to end June 2019. It represents a 258% increase from the same period last year, which saw a loss of N318m ($0.88m). The growth in profit has been underpinned by 11% sales growth and cost management measures.
A big factor has been a 80% decrease in net finance costs as well as cost of sales increasing by less than 4%. Meanwhile revenues rose to N19.5bn ($53.8m), up from N17.5bn ($48.3m) in the year prior. Owners Mondelez will have been buoyed by 19% growth in beverages, which includes Bournvita hot chocolate, and 15% growth in sugar confectionery and gum, which includes the Buttermint, Tom Tom, Clorets and Trident brands.
On the other side, its cocoa products business, with ingredients such as cocoa powder and cocoa butter, saw sales fall by 27%.
Cadbury Nigeria is promising more product innovation and aggressive route to market initiatives (which is likely to mean a strong push on increasing distribution coverage) to continue to drive growth.