Cadbury Nigeria Plc’s profit after tax fell 20.3 percent in the first half of 2026, dropping to N8.1 billion from N10.2 billion a year earlier, as a sharp rise in selling, distribution and administrative costs wiped out the gains the company made at the gross profit line, according to its half-year financials released on 30 June 2026.
Revenue rose 8 percent to N83.3 billion from N77.3 billion in H1 2025, driven by growth across the company’s business segments. Confectionery led the charge, climbing 23.2 percent to N29.9 billion, while intermediate cocoa products more than doubled to N6.5 billion from N3.2 billion on the back of stronger export demand. Refreshment beverages, the company’s largest segment, was the outlier, slipping 5.6 percent to N47.0 billion. Export sales more than doubled to N7.2 billion, from N3.2 billion, even as domestic sales rose a modest 2.8 percent to N76.1 billion.
Cost of sales rose more slowly than revenue, up 6.9 percent to N59.2 billion from N55.4 billion, allowing gross profit to expand 10.3 percent to N24.1 billion from N21.9 billion.
Selling and distribution expenses more than doubled to N10.8 billion from N4.9 billion, while administrative expenses climbed to N1.1 billion from N661.5 million, and other expenses swung to a net cost of N516.7 million from just N24.3 million a year earlier, weighed down by a N418 million penalty charge. As a result, results from operating profit fell 28 percent year on year to N11.8 billion, from N16.3 billion in H1 2025.
Below the operating line, the picture improved. Net finance cost narrowed sharply to N187 million, from N1.7 billion in H1 2025, as an unrealised exchange gain of N871.8 million and lower interest expense on borrowings, down to N929.8 million from N2.1 billion, cushioned the blow from the weaker operating performance.
Even so, profit before tax fell 20.3 percent to N11.6 billion, from N14.5 billion, and profit for the period declined by the same margin to N8.1 billion, from N10.2 billion.
On the balance sheet, total assets fell 4.8 percent year on year to N83.4 billion as at June 2026, from N87.6 billion in the same period in 2025, driven largely by a decline in inventories, which tanked 14.8 percent to N29.4 billion from N34.5 billion.
Total liabilities dropped by 19.6 percent to N61.8 billion, from N73 billion, as a 41.7 percent reduction in short-term borrowings to N18.8 billion, from N32.2 billion ate up the liabilities.
Total equity climbed 48.2 percent to N21.5 billion, from N14.5 billion in H1 2025, as the company’s accumulated retained loss narrowed to N20.2 billion from N27.12 billion, helped by the half’s profit.
Cadbury’s Cashflow had Cash generated from operating activities come in at N4.0 billion for the half, with net cash from operations, after tax and VAT payments, settling at N567.9 million.
Investing activities absorbed N670.9 million, mainly on N832.3 million spent acquiring property, plant and equipment. Financing activities used N4.4 billion, dominated by intercompany loan and interest repayments of N4.1 billion combined. Cash and cash equivalents closed the half at N10.0 billion, up from N8.5 billion in H1 2025.
Cadbury Nigeria’s shares currently trades at N64.50, and the company has a market capitalisation of N147.08 billion and a year-to-date gain of 7.68 percent on their shares.