Cadbury Nigeria Plc has staged a sharp financial turnaround, returning to profitability in the 2025 financial year after a deep loss in 2024, as higher revenues, improved margins, and a dramatic reduction in foreign-exchange losses reshaped its earnings profile.
According to the company’s unaudited financial statements for the year ended 31 December 2025, revenue rose by 31% to ₦169.84 billion, up from ₦129.17 billion in 2024, driven primarily by stronger domestic sales across its core beverage and confectionery portfolio
From Heavy Loss to Solid Profit
Cadbury Nigeria reported a profit after tax of ₦12.09 billion, reversing a ₦22.22 billion loss recorded in the prior year.
Profit before tax came in at ₦17.27 billion, compared with a pre-tax loss of ₦28.33 billion in 2024, marking one of the most significant earnings recoveries in Nigeria’s FMCG sector in the past year.
The turnaround was underpinned by a sharp expansion in operating performance. Operating profit surged 245% to ₦20.55 billion, reflecting both higher sales volumes and a more favourable cost structure.
Margins Rebound as Costs Stabilise
Gross profit more than doubled to ₦36.60 billion, from ₦18.23 billion a year earlier, lifting gross margin materially despite persistent inflationary pressures across raw materials, logistics, and energy.
Selling and distribution expenses rose to ₦12.22 billion, while administrative expenses declined sharply to ₦3.34 billion from over ₦6 billion in 2024—evidence of tighter cost controls following last year’s restructuring and scale-back decisions.
FX Shock Eases, Finance Costs Fall
One of the most decisive shifts in Cadbury Nigeria’s 2025 numbers was the collapse in foreign-exchange losses. Net finance costs fell to ₦3.28 billion, from an extraordinary ₦34.29 billion in 2024, when naira devaluation and FX exposure battered earnings.
Exchange losses on intercompany loans and import finance facilities were significantly reduced, while realised and unrealised FX movements swung closer to balance. This easing of FX pressure alone explains much of the year-on-year earnings swing.
Stronger Balance Sheet, Lower Debt
Cadbury Nigeria closed the year with total assets of ₦82.14 billion, up from ₦72.44 billion, while total equity nearly quadrupled to ₦16.47 billion from ₦4.38 billion in 2024.
Current borrowings declined to ₦22.81 billion, down from ₦32.81 billion a year earlier, signalling gradual deleveraging. Retained losses narrowed substantially to ₦25.21 billion, reflecting the return to profitability.
Cash and cash equivalents stood at ₦15.02 billion, providing a modest liquidity buffer despite heavy capital expenditure on plant, equipment, and right-of-use assets during the year.
What Changed for Cadbury Nigeria?
Cadbury Nigeria’s 2025 performance reflects a combination of macro and company-specific factors:
• Pricing power and volume recovery in core brands such as Bournvita and TomTom
• Operational discipline, including lower administrative overheads
• Reduced FX volatility, compared with the shock conditions of 2024
• More stable financing structure, following intercompany loan adjustments
However, management still faces structural challenges, including high working-capital needs, exposure to imported inputs, and intense competition in Nigeria’s price-sensitive consumer market.
Investor Takeaway
Cadbury Nigeria’s results mark a credible reset after one of the most difficult years in its recent history.
While the sustainability of margins will depend on FX stability and consumer demand in 2026, the 2025 numbers demonstrate that the business can still generate strong operating leverage when macro conditions ease.
