Cadbury Nigeria Plc’s cocoa export revenue fell by more than half between January to September this year, underscoring the pressure Nigeria’s manufacturers face as currency volatility, logistics costs, and weaker demand squeeze overseas sales.
Sales from foreign markets declined 52.7 percent to N5.05 billion in the nine months to September, down from N10.66 billion a year earlier, a loss of about N5.61 billion, according to the company’s latest financial results.
This revenue encompasses the manufacturing and sale of cocoa powder, cocoa butter, cocoa liquor, and cocoa cake.
The export boom, which began following the steep devaluation of the naira in 2023, saw the foreign sales of the manufacturer rise by over 100 percent between the nine months of 2022 to 2023 – from N1.48 billion to N3.13 billion, and reached its highest last year before it lost steam.
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The sharp contraction contrasts with the naira’s devaluation, which in theory should make Nigerian exports more competitive. Instead, industry players say rising production costs, supply-chain disruptions, and difficulty accessing working capital are eroding any potential price advantage.
The Nigerian market, however, showed some resilience as revenue from cocoa products for the nine months surged by 44.8 percent, increasing to N114.19 billion from N78.86 billion recorded in the corresponding period of 2024.
Nigerian cocoa processors are grappling with reduced local bean output due to poor weather and a black pod disease outbreak in a major growing region, according to a BusinessDay report.
Africa’s most populous nation is the world’s fourth top grower of cocoa with 315,000 metric tons (MT), the International Cocoa Organisation (ICCO) said in its third quarterly production bulletin. And it’s set to drop by 10 percent even though ICCO’s forecast shows the country’s production will reach 350,000MT in the 2024/2025 season.
In an earlier report by BusinessDay, Cocoa prices tumbled to a 20-month low. The slump in international sales has added to pressures on Cadbury’s overall revenue mix, increasing reliance on the domestic market at a time when Nigerian consumers are cutting back on discretionary spending due to inflation and falling purchasing power.
The overall revenue for the company amounted to N119.24 billion from the N89.52 billion recorded in the same period last year. Refreshment beverages account for 65.4 percent of the total revenue.
The biscuit arm, launched some two years ago, didn’t generate any revenue in the reviewed period.
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Despite the contraction in export sales, the chocolate maker recorded its first profit in two years, improving significantly to N9.68 billion from a loss of N11.86 billion in the corresponding period last year.
That strengthened key profitability ratios as net margin, Return on Assets and Return on Equity rose to 8.12 percent, 68.85 percent and 11.59 percent respectively compared with -13.24 percent, -270.73 percent and -16.37 percent a year ago.
The consumer goods firm however posted a N495 million net loss in the third quarter, partly attributed to cost pressure brought on by Nigeria’s macroeconomic climate, which resulted in selling, distribution, and administrative costs rising.
As a result, the company reported an operating loss of N374 million, down from a profit of N1.5 billion in the same quarter of the previous year.
Cadbury’s gross profit surged by 88 percent to N27.75 billion, from N14.77 billion in the same period last year, as the company managed cost pressures and benefited from improved pricing and production efficiency. Operating profit soared to N15.9 billion, representing a 154 percent increase from N6.25 billion in 2024.
The stability of the naira also impacted the company’s financials, as net finance cost moderated sharply to N2.07 billion, compared to a staggering N23.18 billion a year earlier, reflecting a significant reduction in foreign exchange losses and interest expenses.
Despite cooling inflation that slowed for the seventh straight month to 16 percent in October 2025, the cost of sales rose 22.9 percent to N91 billion, underscoring the impact of higher input costs and logistic expenses in conveying products.
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On the balance sheet, Cadbury’s total assets grew to N83.48 billion from N72.44 billion at the end of 2024, driven by higher inventories (N26.75 billion) and increased property, plant, and equipment (N18.8 billion). Shareholders’ equity rose significantly to N14.06 billion from N4.38 billion, indicating stronger financial health.
Cash and cash equivalents stood at N11.13 billion, down from N16.34 billion as of December 2024, due to loan repayments and higher working capital needs. Borrowings declined slightly to N30.19 billion from N32.81 billion.
Analysts at Meristem Research see revenue growth momentum continuing on improved domestic demand and stabilising macroeconomic conditions in the country.
“Despite the high-cost environment, we anticipate that the favourable macroeconomic environment, particularly improved FX stability, should provide further relief on overall costs pressures, thereby improving profitability,” the analysts wrote in an earnings flash recently.