Cadbury Nigeria Plc reported a profit after tax of N3.64 billion for the first quarter ended March 31, 2026, a 39 percent decrease from N5.98 billion in the corresponding period of 2025, reflecting the impact of higher production and operating costs on earnings.
According to the Unaudited Financial Statements for the period ended March 31, 2026, the decline in profit came despite an increase in revenue to N39.83 billion from N37.23 billion, driven by sales across its core product lines, particularly refreshment beverages and confectionery.
Cost of sales increased to N28.94 billion from N25.07 billion, reflecting higher input costs tied to raw materials, production overheads, and supply chain expenses. This led to a decline in gross profit to N10.89 billion from N12.15 billion, as the increase in production costs outpaced revenue growth.
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Operating performance was shaped by a combination of cost and distribution dynamics. Selling and distribution expenses rose to N5.16 billion from N2.26 billion, indicating expanded route-to-market activities and logistics-related costs.
Administrative expenses also increased to N724.78 million from N597.85 million, reflecting higher personnel and overhead costs. These movements, alongside a swing in other income to a net expense of N290.33 million from an income of N390.78 million, resulted in operating profit declining to N4.72 billion from N9.69 billion.
Despite this, earnings were supported by a turnaround in finance income. The company recorded net finance income of N477.92 million compared with a finance cost of N1.14 billion in the prior period. This shift was driven by interest income and foreign exchange gains on cash balances and intercompany positions, which offset borrowing-related costs.
On the balance sheet, total assets fell to N76.74 billion from N84.3 billion, driven by a fall in inventories to N27.14 billion from N32.6 billion. However, trade receivables rose to N10.72 billion from N9.8 billion, indicating that customers are still buying on credit. Cash and cash equivalents increased to N8.76 billion from N6.2 billion, reflecting that the business holds cash instead of investing it.
Total equity rose to N17.06 billion from N10.3 billion, driven by retained earnings accretion from the period’s profit, which reduced accumulated losses.
Liabilities declined to N59.68 billion from N73 billion, largely due to a reduction in borrowings to N18.36 billion from N34 billion, reflecting debt repayments. Trade and other payables decreased to N37.75 billion from N34 billion. Current tax liabilities fell to N2.19 billion from N3.3 billion.
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Cash flow from operating activities reported a turnaround of N465.42 million from a negative N1.3 billion, driven by profit generation and supported by working capital movements, including increases in payables. However, this was moderated by a build-up in inventories and tax payments.
Investing activities showed an outflow of N490.98 million, reflecting capital expenditure on property, plant and equipment. Financing activities recorded a net outflow of N4.32 billion, driven by repayments of intercompany loans and related interest, as well as lease obligations, contributing to the reduction in borrowing
Cadbury began the year with a share price of N59.90, and closed with N73.50 per share on Tuesday, gaining 22.7 percent on that price valuation, ranking it 65th on the NGX in terms of year-to-date performance.