Cadbury Nigeria decries forex, inflation concerns on business
Though it was able to reposition its strategy to enhance its competitiveness, Cadbury Nigeria Plc has decried challenges in sourcing foreign exchange, while further coping with the effects of inflation on consumers’ purchasing power.
To deal with dwindling incomes, the company said it had to deploy price adjustments on a number of its products.
Chairman, Cadbury Nigeria, Adedotun Sulaiman, at the Company’s 57th yearly general meeting (AGM), said the firm’s ongoing repositioning strategy aimed at enhancing its competitiveness, is yielding results.
In a statement, which was issued by Corporate Communications and Government Affairs Manager for Cadbury Nigeria, Dr. Frederick Mordi, Sulaiman 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.”
Managing Director, Cadbury Nigeria, Mrs. Oyeyimika Adeboye, said the Company faced huge challenges in sourcing US Dollars for importation of key raw and packaging materials as well as machinery and spare parts.
“Our cost of doing business has increased significantly as our suppliers also faced similar issues in accessing foreign exchange,” she said.
“With rising inflation and higher cost of doing business, we have had to take 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, Mrs. 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.”