Scarcity of dollars, others impacted on our cost of doing business – Cadbury Nigeria

Cadbury Nigeria says it faced huge challenges getting US dollars for the importation of raw and packaging materials, which combined with rising inflation, had impact on its cost of doing business.

Mrs. Oyeyimika Adeboye, the company’s Managing Director disclosed this in a statement issued on her behalf by Frederick Mordi, Corporate Communications and Government Affairs Manager.

Cadbury Nigeria had reported profit of N1,542billion for the first quarter of the year ended March 31, 2022, a growth of over 500% compared to N242 million realised in the same period in 2021.

“Our cost of doing business has increased significantly as our suppliers also faced similar issues in accessing foreign exchange,” Adeboye said.

“With rising inflation and higher cost of doing business, we have had to make price adjustments on a number of our products during 2021. This is more than we have ever had to do in many years, and a reflection of the difficult times we currently face.”

However, despite the supply challenges, Adeboye said the Company witnessed a strong performance across all categories and brands.

She added, “We place a high value on our iconic brands, recognising that our consumers trust us to offer them quality and healthy snacking options. We also understand that our customers who are our business partners, expect us to support them as we operate in the markets to deliver our products to our consumers. Our much-loved brands are the hard currency we trade with, and we continue to invest in them to sustain our growth.”

Mr. Adedotun Sulaiman, Chairman, Cadbury Nigeria, at the Company’s 57th Annual General Meeting (AGM), which took place in Lagos said: “We have expanded our route-to-market capabilities, entered new segments in the candy category, and deployed new technology that will improve our business operations, as part of this strategy.”