Cadbury Nigeria Plc returned to profit in 2025 after two consecutive years of losses, buoyed by strong sales growth, wider margins and a sharp easing in foreign-exchange pressures that had previously overwhelmed earnings.
The chocolate and beverage maker posted a profit after tax of N12.09 billion for the year ended December 2025, reversing a loss of N22.22 billion in 2024 and a loss of N19.08 billion in 2023, according to its unaudited financial statements.
The swing back into the black marks a critical turnaround for the Nigerian unit of Mondelez International after currency devaluations, surging finance costs and weak consumer demand dragged results deep into negative territory over the past two years.
Revenue climbed 31 percent to N169.84 billion from N129.17 billion in 2024, driven by price increases, improved product availability and a gradual recovery in consumer demand despite elevated inflation.
Gross profit more than doubled to N36.60 billion, pushing gross margin to about 21.5 percent, up from roughly 14.1 percent a year earlier, highlighting the impact of pricing actions and tighter cost control.
Operating performance improved even more sharply. Results from operating activities surged to N20.55 billion, compared with N5.96 billion in 2024, as expenses rose far more slowly than revenue.
Read also: Unilever’s profit jumps to a record on stable naira
Selling and distribution expenses increased to N12.22 billion from N6.27 billion, reflecting higher volumes and logistics costs, while administrative expenses fell to N3.34 billion from N6.02 billion, signalling improved overhead efficiency following earlier restructuring efforts.
The biggest boost to earnings came from a sharp reduction in finance costs. Net finance cost narrowed to N3.28 billion from N34.29 billion in 2024, when heavy foreign-exchange losses on dollar-denominated obligations wiped out operating gains.
In 2025, exchange movements turned supportive, with the company recording unrealised FX gains and far lower realised losses, benefiting from a more stable naira and reduced foreign-currency exposure.
As a result, profit before tax swung to N17.27 billion, from a loss of N28.33 billion a year earlier. Income tax expenses of N5.18 billion reduced the bottom line, but still left Cadbury with its strongest earnings in several years. Basic earnings per share rose to 530 kobo, compared with a loss of 975 kobo in 2024.
The stronger earnings fed through to the balance sheet. Total equity almost quadrupled to N16.47 billion, up from N4.38 billion in 2024, supported by retained earnings and the prior year’s intercompany loan forgiveness that boosted reserves. Retained losses narrowed to N25.21 billion from N37.30 billion, underlining the pace of the recovery.
Leverage, while easing, remains a watch point. Borrowings declined to N22.81 billion from N32.81 billion, helping to reduce interest expenses, but trade and other payables rose to N36.98 billion, reflecting higher raw material purchases and operating scale-up.
Cash and cash equivalents dipped to N15.02 billion, from N16.34 billion, after funding capital expenditure and debt repayments.
Cash flow from operating activities remained solid at N20.48 billion, broadly flat year on year, supported by stronger earnings and favourable working-capital movements. That cash generation helped fund N5.30 billion in capital expenditure and repayments of intercompany loans and lease liabilities, pointing to gradual balance-sheet repair.
By product category, refreshment beverages — led by Bournvita — remained the main revenue driver, contributing N104.59 billion, while confectionery generated N53.53 billion. Export sales slipped to N11.71 billion, suggesting growth remains heavily concentrated in the domestic market, where consumers are still under pressure despite signs of easing inflation.
The turnaround comes as Nigeria’s consumer goods makers adjust to a new macroeconomic reality of a weaker but more predictable currency and slowing inflation.
The naira recorded its first gain in more than a decade last year supported by various reforms by the central bank that helped lure in scarce foreign exchange. General prices also slowed to its lowest levels since the reweighting of the Consumer Price Index.
Inflation cooled to 15.15 percent in December compared to over 30 percent in the same period in 2024, helping to improve consumer spending and strengthen earnings.
Shares of Cadbury closed on Monday, January 26, 2026 at N65.30 on the Nigerian Stock Exchange (NGX), gaining 9.02 percent since the year began and ranking 73rd on the NGX in terms of year-to-date performance. In the past four-week period, the stock has accrued 10 percent.