NIGERIA – Cadbury Nigeria’s board of directors have approved continued partnership with Mondelez International for an extended period of one year.

The directive mandates the company’s management to continue business transactions with Mondelez International and all its subsidiaries and partners, as well as those associated with Cadbury Nigeria Plc itself.

The board members also ratified all existing transactions that were earlier entered into with Mondelez International, its subsidiaries, and other business partners.

The nature of these transactions between the two companies range from purchase of raw materials, equipment and finished products to support services and intellectual property licenses.

Cadbury Nigeria Plc formerly a subsidiary of Cadbury UK was established in the 1950s.

However, after Mondelez International (an American company) acquired stakes in Cadbury Schweppes Overseas Ltd, it became entitled to a 74.97% majority equity interest in Cadbury Nigeria Plc.

According to the recently released interim financial statement for the first quarter period ended March 31st, 2020, Cadbury Nigeria’s profit before tax for the period rose by 26% to N912.7 million (US$2.5m) compared to N723.9 million (US$2m) achieved in Q1 2019.

However, the company’s revenue for the quarter declined by 8% to N8.5 billion (US$23.5m) from N9.2 billion (US$25.5m) of the comparable Q1 period of 2019.

The reduction was as a result of drop in domestic sales, which fell to N7.3 billion (US$20.2m) from N8.3 billion (US$23m) due to the low purchasing power of consumers in the country.

But, the company experienced a spike in its export sales, N1.2 billion (US$3.3m) as against N945.5 million (US$2.6m) in Q1 2019 in the period under review.

Gross profit declined to N2.3 billion (US$6.3m) from N2.4 billion (US$6.6m), while other income jumped to N77.6 million (US$0.215m) from N45.9 million (US$.12m).

The company’s cost of sales fell by 9% to N6.2 billion (US$17.1m) against N6.9 billion (US$19.1m) recorded in Q1 2019

The management cut down the selling and distribution costs to N1.1 billion (US$3m) from N1.3 billion (US$3.6m) as well as the administrative expenses to N339.7 million (US$0.94m) from N449.1 million (US$1.24m) in Q1 2019.

The company further indicated that its finance income dropped to N30.3 million (US$84,000) from N36.6 million (US$101,000), while the net finance income increased to N30.3 million (US$84,000) from N10.3 million (US$28,000).

Its brands fall into three principal categories, namely: refreshment beverages, confectionary and intermediate cocoa products.

Cadbury Bournvita and Cadbury 3-in-1 hot chocolate are the refreshment beverages, Tom Tom, Buttermint and Clorets gum are the Confectionery products while Cocoa Butter is a key product in the intermediate cocoa category.