Cadbury Nigeria Plc returned to quarterly profitability in the third quarter of 2026, posting a profit after tax of N2.03 billion, compared with a loss of N495.96 million in the corresponding period of 2025, as lower production costs boosted margins.
The manufacturer of Bournvita, TomTom and other confectionery products recorded revenue of N43.34 billion in the three months ended September 2026, up 3.2 percent from N41.99 billion a year earlier, according to its unaudited financial statements.
Gross profit more than doubled to N12.38 billion from N5.89 billion, as cost of sales declined 14.3 percent to N30.96 billion from N36.10 billion, despite the increase in revenue.
The improvement lifted the company’s gross profit margin to 28.6 percent from 14 percent in the third quarter of 2025, reflecting a stronger contribution from sales after production costs.
Operating profit also recovered to N2.54 billion from an operating loss of N374.37 million in the prior-year period, while profit before tax rose to N2.90 billion from a loss of N708.51 million.
The recovery came despite a sharp increase in selling and distribution expenses, which climbed to N9.28 billion from N4.18 billion, indicating higher costs associated with moving products to market.
Administrative expenses, however, declined to N514.77 million from N1.75 billion, helping to support the improvement in operating performance.
Cadbury Nigeria’s net finance position also improved, with the company recording net finance income of N362.91 million in the third quarter, compared with a finance cost of N334.15 million in the corresponding period of 2025.
The quarterly rebound contributed to stronger cumulative earnings for the nine months ended September 2026. Profit after tax rose 4.8 percent to N10.14 billion from N9.68 billion in the same period last year, while revenue increased 6.2 percent to N126.69 billion from N119.25 billion.
However, operating profit for the nine-month period declined 10 percent to N14.31 billion from N15.90 billion, as higher selling and distribution expenses offset gains from lower production costs.
Selling and distribution expenses more than doubled to N20.05 billion from N9.08 billion over the nine-month period, while administrative expenses fell to N1.58 billion from N2.41 billion.
The company’s balance sheet also strengthened during the period, with borrowings declining to N14.90 billion as of September 30, 2026, from N22.81 billion at the end of December 2025. Total equity increased to N23.56 billion from N13.42 billion, supported by accumulated profits.
However, cash and cash equivalents fell to N10.67 billion from N15.02 billion at the end of 2025, while inventories rose to N23.40 billion from N17.36 billion, indicating that more funds were tied up in stock.
The consumer goods manufacturer closed its last trading day on Wednesday at N57 per share on the Nigerian Stock Exchange (NGX). Cadbury began the year with a share price of N59.90 but has since lost 4.84 percent of that price, ranking it 93rd on the NGX in terms of year-to-date performance.
Chinwe Michael is a Nigerian business journalist and media professional with over 4 years of experience covering companies, financial markets, banking, fintech, economic policy, financial inclusion, and corporate affairs. She currently leads the Companies & Markets desk at BusinessDay, where she drives coverage of Nigeria’s corporate and capital markets, translates complex financial data into accessible stories, and mentors younger journalists. Prior to that, she was the head of the financial inclusion/fintech desk. With a background in banking and finance and extensive experience in media and communications, Michael has developed expertise in financial journalism, economic analysis, investigative reporting and market intelligence. Her work examines how monetary policy, corporate performance, capital flows, technology, and regulatory decisions affect businesses, investors, and households. She was selected from about 3,000 applicants as one of 20 journalists for Cohort 4 of the MTN Media Innovation Programme, gaining exposure to new approaches to journalism, technology, and media innovation. Her international journalism experience and engagement with professionals across Russia, Dubai, Saudi Arabia, and others in different sectors have further broadened her understanding of global communication and development.
