The Nation Newspaper

Tag: Cadbury

  • Analysts cautious on Cadbury’s earnings outlook

    Steep decline in the share price of Cadbury Nigeria Plc could present investors with a good buy opportunity, but the lack of clarity in the company’s strategy and outlook calls for caution, analysts at Exotix Partners, an international finance firm, have said.

    In its latest review of Cadbury Nigeria, Exotix said it was upgrading Cadbury Nigeria to a “Hold” position on valuation grounds, citing a relatively steeper decline in its share price, a 52 per cent decline over 12 months period as against average decline of 22 per cent by other consumer peers during the period.

    Exotix Partners LLP, a global finance and investment firm coordinates its global operations through five major offices in London, New York, Lagos, Dubai and Nairobi.

    Analysts said Cadbury Nigeria’s current share price decline was both reflective of macroeconomic concerns and insufficient visibility on the company’s strategy and outlook. Analysts also lowered short and medium term earnings outlook for the company significantly, citing its weak sales and lack of robust product portfolio to drive the top-line.

    While analysts were cautious not to use price earnings ratio or earnings before interest, tax, depreciation and amortization (EBITDA) to evaluate the potential of the company given its weak earnings outlook, they held that it would take four years, by 2019, before Cadbury Nigeria’s EBITDA could recover to peak levels of N7.2 billion recorded in 2013.

    Analysts however noted that Cadbury Nigeria’s recovery could be accelerated if well managed.

    “At the moment the company’s challenges are largely macro related, as with its peers, as the weak macroeconomic environment results in weaker sales. However, Cadbury’s performance has been much weaker than peers owing to greater exposure to dollar-indexed inputs – cocoa; its relatively lower operating leverage; and legacy issues pertaining to its product portfolio – which is concentrated in its flagship powdered chocolate beverage Bournvita – and its weak route to market (RTM), given its limited network of distributors,” Exotix stated.

    The report commended the recent rebranding and changing of Bournvita’s formulation as well as introduction of new products by Cadbury Nigeria, describing these as first major steps at addressing the concentration of its portfolio, which has been a weak link.

    Exotix also noted increase in marketing activity in the second half of 2015 while Cadbury also partnered with the Tolaram Group on a joint promotion effort of Bournvita and Indomie Noodles, which could further lead to stronger distribution partnership in a bid to strengthen Cadbury Nigeria’s route to market.

    Chairman, Cadbury Nigeria Plc, Mr. Atedo Peterside, had outlined that Cadbury Nigeria Plc, will focus on increasing its market share in the powdered drink and candy segments as part of four key strategic initiatives aimed at revamping growth and consolidating the gains of recent investments and breakthroughs.

    Peterside outlined that the company would concentrate efforts at increasing its market share in the powdered-drink and candy categories while investing in innovation and enhancement of its product portfolio.

    He added that the company would take further advantage of its route-to-market initiative as well as build a strong, sustainable business built on top talents.

    In address to shareholders of the company, Peterside, said Cadbury Nigeria had posted overall strong performance in view of operating and macroeconomic challenges.

    According to him, the immediate past business year was very challenging for companies in view of the country’s unstable foreign-exchange market, decline in oil revenue, high-input costs, fierce competition, insecurity in parts of the country, generally poor infrastructure and costly and unreliable power supply.

    He said the company was able to mitigate the impact of the tough operating environment by continuing to improve its operational efficiencies.

    “One of the major strengths of our company has been operational efficiency, as aligned with global best practices. Constant improvements in operational efficiency helped us to offset difficulties in the operating environment,” Peterside noted.

  • Sacked Cadbury workers get N150m lifeline

    Sacked Cadbury workers get N150m lifeline

    Twenty seven sacked workers of beverages grant Cadbury Nigeria Plc have got about N150 million as severance package. The lifeline came after five years of struggle by the National Union of Food Beverage and Tobacco Employees (NUFBTE) to get the management of Cadbury to pay them off.

    NUFBTE declared a trade dispute against the management of Cadbury and consistently followed the case until judgment was delivered in October last year. The judgment in favour of the union had directed the company to reinstate the workers and pay them the backlog of their salaries.

    The workers, however, resigned en-mass and demanded for their exit package.

    Cadbury management last month decided to pay the workers off and called them to its headquarters in Ikeja, Lagos State, for the payment. The workers received two and six million naira, based on their positions and job titles.

    However, the chairman of the workers union, Mr. Akinkuotu Adekunle, said the management was still indebted to the embattled workers, as they were only paid their salaries and gratuities.

    According to him, the workers  expect the company to pay their leave bonuses, end of year gifts, which is usually monetised and 13th month incentives, as well as awards and food allowances as part of the exit packages.

    Akinkuotu recalled that the bone of contention was the management’s flagrant disregard of collective bargaining and procedural agreement. According to him, the management, before he was elected, often manipulated the union and sacked workers at will without due consultation with the national secretariat of the union.

    He said:“In 2008, the management wanted to sack workers without the knowledge of our national secretariat. We resisted it until the national union was carried along. The management had not been treating those of us working in Ondo State well at all, here, we are paid peanuts, and before now our monthly medical allowance used to be N200, before we challenged them and it was increased to N1500.”

    He said it was a call for the re-appraisal of the workers’ welfare initiated by the union, which the management refused that snowballed into the crisis. “In 2009, we wrote management for a meeting to reappraise the condition under which we worked, but not until June 2010, that we got the audience.

    “Even at the meeting, management disagreed on all issues we presented and subsequently refused to have any other meeting with us. Rather, the management resorted to threatening and harassing us with mobile policemen, issued us queries and eventually forced us to collect sack letters,” Akinkuotu stated.

    Noting that it was against labour law to disengage workers under duress, Akinkuotu lamented that in total disregard of due process, the management on June 30, 2010 sacked 27 workers.

    The National President of the union, Lateef Oyelekan, though was happy that the workers eventually got their entitlements after five years of struggle, saying that peace and harmony could dominate the workplace if the management could respect the tenets of industrial relations.

    “The issue supposed not to have degenerated to the level of declaring trade dispute because we follow normal procedure, but for the management stubbornness. The lesson for both of us is that dialogue is better than crisis”, he said.

    He said the battle was easier for the union to fight as the workers had implicit confidence in the leadership of the union. Besides, the union was equally paying the embattled workers monthly stipends.

    Oyelekan added that the workers who resigned en-masse after the judgment was in accordance with the union’s advice.

    He stated, “Nobody can force unwilling workers on unwilling employers, and we all know that people don’t go to court and return as friends, this is the reason why we advised our members to resign and get all their entitlements. It is the best option instead of going back to face victimisation and humiliation.”

  • ‘Cadbury commited to developmental initiatives in Lagos’

    ‘Cadbury commited to developmental initiatives in Lagos’

    Cadbury Nigeria, the front-runner in confectionery and beverages, has reiterated its commitment towards the development of Lagos State through its various developmental initiatives.

    This was revealed recently during a courtesy call on the Governor of Lagos State, Mr Akinwunmi Ambode, by Cadbury Nigeria Leadership Team led by Managing Director, Cadbury West Africa, Mr Roy Naaman, Finance Director, Mrs. Yimika Adeboye, Company Secretary/Chief Counsel, Mrs. Fola Akande, Manufacturing Director, Mr Nasir Malik, and Head Corporate and Government Affairs, Mr. Bala Yesufu.

    Speaking during the visit, Managing Director, Cadbury West Africa, Mr Roy Naaman, reiterated that Cadbury has enjoyed a cordial relationship with the government and people of Lagos State over the years and grateful for the warm reception accorded to Cadbury Nigeria in the state.

    He went further to say that “On our part, we shall remain a responsible corporate citizen of the state and continue to partner with the government through employment generation, participation in various developmental initiatives, contribution to the state treasury in different forms and stimulation of socio-economic activities in the state.”

    In his remarks, the Governor of Lagos State, Mr Akinwunmi Ambode, opined that Cadbury’s newly inaugurated factory is good news for the Lagos economy and a boost to the states’ efforts to bringing investments to the state.

    “As a state, we have a duty to support Cadbury not just because you employ our citizens and the social responsibility activities you undertake, but to ensure we keep enjoying the quality and consistency your brands bring to our community.”

    Speaking on the visit, the Head, Corporate & Government Affairs, Cadbury Nigeria, Mr. Bala Yesufu, noted that the courtesy visit was not only to express appreciation to His Excellency for unveiling Cadbury’s state-of-the-art factory recently but was also  necessitated by the need to continually build, strengthen, nurture and sustain relationship with government at all levels.

  • Cadbury injects more distribution vans into the market

    Cadbury injects more distribution vans into the market

    Cadbury has acquired 250 sales vans which were handed over to its key distributors as part of its Route-To-Market initiative to boost operational efficiency. The brand new Mitsubishi vans were handed over to the distributors by its Managing Director, Mr. Roy Naaman at a ceremony at the firm’s Corporate Office, Agidingbi Ikeja.

    In a statement, its Head Corporate & Government Affairs, Mr. Bala Yesufu,said: “This initiative is aimed at ensuring that our brands significantly increase their presence in the Nigerian space.”

  • Cadbury donates to orphanage

    Cadbury donates to orphanage

    The Vice-President, Mondelez International, parent company of Cadbury Nigeria, Mr. Daniel Myers, has called on multinationals to institute a service day where employees will be required to support their communities and social projects.

    Myers said this when he visited the Hearts of Gold Hospice, Lagos in commemoration of the company’s global month of service.

    Appreciating the founder of the home, Mrs. Theresa Adedoyin, Myers said it was important for businesses to reach out to the needy.

    He said: “Giving back and working in our communities remind me that our business success is directly linked to enhancing the well-being of the people who make and enjoy our products and to supporting the communities where we grow our ingredients.

    “I have read about the good work everyone is doing – creating a peaceful, loving environment to help children dealing with very serious health challenges, who otherwise would not have such support. I am happy that we are able to help with cleaning, making repairs and brightening up the space. Last year, we had about 15,000 of our people volunteering in 71 countries.”

     

  • Cadbury Nigeria to revamp growth with four-point strategy

    Cadbury Nigeria to revamp growth with four-point strategy

    Cadbury Nigeria Plc, the Nigerian business of Mondelez International, one of the world’s largest snack companies, will focus on increasing its market share in the powdered drink and candy segments as part of four key strategic initiatives this year to revamp flagging growth and consolidate the gains of recent investments and breakthroughs.

    Chairman, Cadbury Nigeria Plc, Mr. Atedo Peterside, said the company would focus on four key strategic initiatives to realize its growth ambitions this year, after it took major hits in sales and profit in 2014.

    Peterside outlined that the company would concentrate efforts at increasing its market share in the powdered-drink and candy categories while investing in innovation and enhancement of its product portfolio.

    He added that the company would take further advantage of its route-to-market initiative as well as build a strong, sustainable business built on top talents.

    In address to shareholders of the company, Peterside, said Cadbury Nigeria posted overall strong performance in 2014 in view of operating and macroeconomic challenges.

    According to him, the immediate past business year was very challenging for companies in view of the country’s unstable foreign-exchange market, decline in oil revenue, high-input costs, fierce competition, insecurity in parts of the country, generally poor infrastructure and costly and unreliable power supply.

    He said the company was able to mitigate the impact of the tough operating environment by continuing to improve its operational efficiencies.

    “One of the major strengths of our company has been operational efficiency, as aligned with global best practices. Constant improvements in operational efficiency helped us to offset difficulties in the operating environment,” Peterside noted.

    Shareholders at the annual general meeting, which was presided over by Mr. Adedotun Sulaiman, a non-executive director who stood in for the chairman, approved distribution of N1.22 billion as cash dividends for the 2014 business year, representing a dividend per share of 65 kobo.

    Key extracts of the audited report and accounts for the year ended December 31, 2014 showed that sales dropped from N35.76 billion to N30.52 billion. Gross profit dropped from N13.10 billion to N7.93 billion. The company recorded pre and post tax profits of N1.47 billion and N1.51 billion respectively in 2014, representing net earnings per share of 75 kobo. Pre and post tax profits were N7.42 billion and N6.02 billion respectively in 2013.

    Roy Naaman, who resumed as managing director of Cadbury Nigeria on January 1, 2015, expected to help consolidate the company’s market share and tap into other expanding markets in West Africa.

    Cadbury Nigeria had stated that Naaman as a highly experienced brand professional would lead the snacks group’s expansion in West Africa and deliver consistent and strong profit to shareholders.

    “In Roy, we are very pleased to gain a highly experienced leader, with a strong track record in driving sustained and profitable growth. In his previous role, Roy was instrumental in spurring business expansion in southern Africa and the Caucasus. He is a most valuable addition to our company,” Romeo Lacerda, President, Markets, Eastern Europe, Middle East and Africa, Mondelçz International, said in a company statement.

    Naaman joins Mondelçz International from the Diplomat Group, a global distribution company representing leading brands. With a Bachelor of Arts in business, majoring in finance, Naaman has held a number of positions in the Diplomat Group in several countries, including Georgia, and most recently as a General Manager of its largest market.

    Mondelçz International, a global snacks powerhouse, holds 74.99 per cent equity stake in Cadbury Nigeria, the remaining 25.01 per cent shares are held by a diverse group of Nigerian individual and institutional investors.

    Cadbury Nigeria has a cocoa processing factory located in Ondo town, 275km from Lagos, with a capacity of 12,500tons per year, processing cocoa beans into a range of intermediate products including cocoa butter, cocoa liquor and cocoa powder for export and local customers.

  • Cadbury Nigeria declares N1.22b dividend

    Cadbury Nigeria declares N1.22b dividend

    Cadbury Nigeria Plc would distribute N1.22 billion to shareholders as cash dividends for the immediate past business year as the food company struggled with notable contraction in earnings.

    The Board of Directors of Cadbury Nigeria indicated that shareholders would receive a dividend per share of 65 kobo. Shareholders are expected to approve the profit distribution at the annual general meeting on June 10 and the dividend will subsequently become payable on June 11.

    The dividend recommendation highlighted the contraction in the earnings of the food company. Cadbury Nigeria had distributed N2.4 billion as dividends to shareholders, representing a dividend per share of N1.30 for the 2013 business year. The company had paid a dividend per share of 50 kobo for the 2012 business year.

    Audited report and accounts of Cadbury Nigeria for the year ended December 31, 2014 showed that sales dropped by 15 per cent while pre and post tax profits declined by 80 per cent and 75 per cent respectively.

    Turnover dropped from N35.76 billion in 2013 to N30.52 billion in 2014. Profit before tax slumped to N1.47 billion as against N7.42 billion while profit after tax declined from N6.02 billion to N1.51 billion. Earnings per share thus dropped from N1.92 to 75 kobo.

    The decline also affected the balance sheet of the company. While fixed assets slipped marginally from N16.94 billion to N16.48 billion, current assets dropped by 53 per cent from N26.23 billion to N12.34 billion. Share-holders’ funds consequently dropped by 52 per cent from N23.99 billion to N11.54 billion.

    Cadbury Nigeria is looking to consolidate its market share and tap into other expanding markets in West Africa with the resumption of Roy Naaman as its new managing director on January 1, 2015.

    Cadbury Nigeria stated that Naaman as a highly experienced brand professional would lead the snacks group’s expansion in West Africa and deliver consistent and strong profit to shareholders.

    “In Roy, we are very pleased to gain a highly experienced leader, with a strong track record in driving sustained and profitable growth. In his previous role, Roy was instrumental in spurring business expansion in southern Africa and the Caucasus. He is a most valuable addition to our company,” Romeo Lacerda, President, Markets, Eastern Europe, Middle East and Africa, Mondelçz International, said in a  statement.

    Naaman joins Mondelçz International from the Diplomat Group, a global distribution company representing leading brands. With a Bachelor of Arts in business, majoring in finance, Naaman has held a number of positions in the Diplomat Group in several countries, including Georgia, and most recently as a General Manager of its largest market. He joins Cadbury Nigeria 1st January, 2015.

    Mondelçz International, a global snacks powerhouse, holds 74.99 per cent equity stake in Cadbury Nigeria, the remaining 25.01 per cent shares are held by a diverse group of Nigerian individual and institutional investors.

  • Cadbury appoints MD

    Cadbury appoints MD

    Cadbury Nigeria Plc. has announced the appointment of a new  Managing Director.

    He is Roy Naaman. He succeeds Emil Moskofian.

    Naaman joins Mondelçz International from the Diplomat Group.

    A holder of a Bachelor of Arts in business, majoring in finance, Naaman has held many positions in the Diplomat Group in several countries, including Georgia, where he was  General Manager.

    His appoinment takes effect from January 1, 2015.

    In a statement, Romeo Lacerda, the President, Markets, Eastern Europe, Middle East and Africa, Mondelçz International, said: “Moskofian’s commitment and leadership have made a valuable contribution to the success of Cadbury Nigeria over the last few years.

    “This includes commendable strides and solid achievements in sales volume, profitability and point-of-sales coverage, as well as brand innovation, compliance and control.

    “In Roy, we are very pleased to gain a highly experienced leader, with a strong track record in driving sustained and profitable growth. In his previous role, Roy was instrumental in spurring business expansion in southern Africa and the Caucasus. He is a most valuable addition to our company.”

  • Cadbury Nigeria eyes larger market share with new MD

    Cadbury Nigeria Plc hopes to consolidate its market share and tap into other expanding markets in West Africa with the appointment of a new managing director.

    Cadbury Nigeria has appointed Roy Naaman as its new managing director, with effect from January 1, 2015. He will succeed Emil Moskofian, who leaves the company to explore opportunities outside Mondelçz International, Cadbury Nigeria’s parent company.

    Cadbury Nigeria stated that Naaman as a highly experienced brand professional would lead the snacks group’s expansion in West Africa and deliver consistent and strong profit to shareholders.

    “In Roy, we are very pleased to gain a highly experienced leader, with a strong track record in driving sustained and profitable growth. In his previous role, Roy was instrumental in spurring business expansion in southern Africa and the Caucasus. He is a most valuable addition to our company,” Romeo Lacerda, President, Markets, Eastern Europe, Middle East and Africa, Mondelçz International, said in a company statement.

    He noted that Emil Moskofian’s commitment and leadership have made a valuable contribution to the success of Cadbury Nigeria over the last few years including commendable strides and solid achievements in sales volume, profitability and point-of-sales coverage, as well as brand innovation, compliance and control.

    Naaman joins Mondelçz International from the Diplomat Group, a global distribution company representing leading brands. With a Bachelor of Arts in business, majoring in finance, Naaman has held a number of positions in the Diplomat Group in several countries, including Georgia, and most recently as a General Manager of its largest market. He joins Cadbury Nigeria 1st January, 2015.

    Mondelçz International, a global snacks powerhouse, holds 74.99 per cent equity stake in Cadbury Nigeria, the remaining 25.01 per cent shares are held by a diverse group of Nigerian individual and institutional investors.

    Cadbury Nigeria has a cocoa processing factory located in Ondo town, 275km from Lagos, with a capacity of 12,500tons per year, processing cocoa beans into a range of intermediate products including cocoa butter, cocoa liquor and cocoa powder for export and local customers.

    Mondelçz International Inc is a global snacking powerhouse, with total revenue of $35 billion in 2013. Mondelçz International is ranked within the Standard and Poor’s 500, NASDAQ 100 and Dow Jones Sustainability Index. Creating delicious moments of joy in 165 countries, Mondelçz International is a world leader in chocolate, biscuits, gum, candy, coffee and powdered beverages, with billion-dollar brands such as Cadbury, Cadbury Dairy Milk and Milka chocolate, Jacobs coffee, Oreo, LU and Nabisco biscuits, Tang powdered beverages and Trident gum.

  • Cadbury Nigeria wins nutrition award

    Cadbury Nigeria Plc has received an excellence award in recognition of its valuable contribution to the development of nutrition in Nigeria.

    The award was given to Cadbury Nigeria by Nutrition Society of Nigeria (NSN), a professional non-governmental organisation of experts from across nutritional disciplines.

    Cadbury Bournvita, rich in energy and essential micronutrients, is the only food drink in Nigeria endorsed by the NSN.

    In a recent meeting, the NSN Council reviewed the contribution made by supporting individuals, NGOs and businesses, as well as the government of Nigeria and its agencies, towards the nutritional well-being of Nigerians. The Council found Cadbury Nigeria’s contribution to be highly commendable and deserving of recognition.

    Commenting on the award, Cadbury Nigeria’s Managing Director, Emil Moskofian, said: “Cadbury Nigeria is proud to be associated with such a reputable and valuable Nigerian institution as the NSN, and to partner with it in tackling food, health and nutritional challenges that militate against sustainable human and economic development in this great country.”

    The award was presented to the company officials at the 44th annual NSN conference in Owerri, Imo State, under the theme: ‘Adequate Nutrition: A Panacea for Sustainable Education and National Development’.

    Cadbury Nigeria is a subsidiary of Mondelçz International, the world’s leading snacks group. Cadbury Nigeria Plc is a publicly quoted company offering some of the most-loved brands in Nigeria.

    A front-runner in confectionery and beverages, Cadbury Nigeria’s quality products – Cadbury Bournvita, TomTom, Trebor Buttermint and Tang – are market leaders in their various consumer segments, enjoyed throughout Nigeria and beyond. Cadbury Nigeria is a 74.99 per cent-owned subsidiary of Mondelçz International, a global snacks powerhouse with an unrivalled portfolio of brands.

    The remaining 25.01% shares are held by a diverse group of indigenous individual and institutional investors. Cadbury Nigeria has a cocoa processing factory located in Ondo town, 275km from Lagos, with a capacity of 12,500tons per year, processing cocoa beans into a range of intermediate products including cocoa butter, cocoa liquor and cocoa powder for export and local customers.

    Mondelçz International, Inc. (NASDAQ: MDLZ) is a global snacking powerhouse, with 2013 revenue of $35 billion. Creating delicious moments of joy in 165 countries, Mondelçz International is a world leader in chocolate, biscuits, gum, candy, coffee and powdered beverages, with billion-dollar brands such as Cadbury, Cadbury Dairy Milk and Milka chocolate, Jacobs coffee, Oreo, LU and Nabisco biscuits, Tang powdered beverages and Trident gum.

    Mondelçz International is a proud member of the Standard and Poor’s 500, NASDAQ 100 and Dow Jones Sustainability Index.