Cadbury Nigeria Plc recorded a 4.75% increase in pre-tax profit to N14.48 billion for the nine months ended September 30, 2026, compared with N13.82 billion in the corresponding period of 2025.

According to the company’s unaudited third-quarter financial statements filed with the Nigerian Exchange (NGX) on Thursday, October 29, revenue increased by 6.24% to N126.69 billion from N119.25 billion.

Profit after tax rose by 4.75% to N10.14 billion from N9.68 billion, while earnings per share increased to N4.45 from N4.24, supported by stronger gross margins and lower finance costs.

Cadbury Gross Profit rises 31.6%

Cadbury’s gross profit increased by 31.55% to N36.50 billion from N27.75 billion, reflecting improved profitability after production costs.

• Cost of sales declined by approximately 1.4% despite higher revenue, lifting gross margin to 28.8% from 23.3% in the corresponding period of 2025.
• Operating profit declined by 10.01% to N14.31 billion from N15.90 billion, despite the increase in gross profit.
• Selling and distribution expenses more than doubled to N20.05 billion, limiting the benefit of lower production costs.
• Administrative expenses and other operating costs also weighed on operating performance during the period.
• Lower finance costs helped support the increase in pre-tax profit despite the decline in operating earnings.
• The improvement in gross margin indicates that Cadbury generated more profit from its revenue after accounting for production costs.

However, the increase in selling and distribution expenses prevented the stronger gross profit from translating into higher operating profit.

The company also recorded a significant improvement in third-quarter earnings, returning to positive operating and pre-tax profit after reporting losses in the corresponding period of 2025.

Cadbury exports more than double

Cadbury’s export revenue increased by approximately 106.1% to N10.40 billion from N5.05 billion, making international sales an increasingly important contributor to revenue growth.

• Domestic sales increased by approximately 1.8% to N116.29 billion from N114.20 billion, with Nigeria remaining the company’s largest market.
• Exports accounted for approximately 8.2% of total revenue, compared with 4.2% in the corresponding period of 2025.
• Export sales contributed roughly 72% of the company’s total revenue increase of N7.44 billion during the nine-month period.
• Third-quarter revenue increased by approximately 3.2%, while cost of sales declined by 14.3%, supporting stronger gross profitability.
• Third-quarter operating profit recovered to N2.54 billion from a loss of N374 million, while pre-tax profit improved to N2.90 billion from a loss of N709 million.
• The quarterly turnaround reflects a notable improvement in earnings compared with the corresponding period of 2025.

In a statement accompanying the results, the newly appointed Managing Director, Ayman Fahmy Gaafar, attributed the performance to operational improvements and said the company would continue strengthening its capabilities, cost management and innovation.

To further strengthen its board, Cadbury recently announced the appointment of Dr. Doyin Salami as chairman following the resignation of Adedotun Sulaiman, alongside Uwa Osa-Oboh’s appointment as an independent non-executive director.

Cadbury borrowings decline 35%

Cadbury’s balance sheet strengthened during the nine-month period, with total assets increasing by 5.95% to N79.84 billion from N75.36 billion at the end of December 2025.

• Total liabilities declined by 9.13% to N56.29 billion, while shareholders’ funds increased by 75.55% to N23.56 billion from N13.42 billion.
• Borrowings declined by approximately 35% to N14.90 billion from N22.81 billion, reducing the company’s outstanding debt.
• Accumulated losses narrowed to N18.19 billion from N28.33 billion, although retained earnings remained negative at the end of September.
• Cash and cash equivalents declined by 28.96% to N10.67 billion from N15.02 billion, while operating cash flow fell by approximately 51%.
• Inventory increased by almost 35%, while capital expenditure declined to N2.12 billion from N5.30 billion in the corresponding period of 2025.
• The decline in operating cash flow contrasts with the improvement in reported profitability, highlighting the importance of cash generation in sustaining the company’s recovery.

Cadbury shares closed at N57 on October 29, 2026, compared with N59.90 at the beginning of the year, representing a year-to-date decline of approximately 4.84%.

Investors will be monitoring whether the company can maintain stronger gross margins, manage distribution expenses, and improve operating cash flow as export sales expand.