Cadbury Nigeria Posts ₦17.2 Billion Profit, Marks Turnaround in 2025
Cadbury Nigeria Posts ₦17.2 Billion Profit, Marks Turnaround in 2025
Cadbury Nigeria Plc achieved a major financial recovery in 2025, posting a pretax profit of ₦17.2 billion.
This marks a sharp reversal from the ₦28.3 billion loss recorded in 2024. According to the company’s unaudited financial statements, this “remarkable turnaround” highlights a successful navigation of previous macroeconomic headwinds.
Annual revenue climbed by 31.49% to reach ₦169.8 billion, driven primarily by a robust domestic market which contributed 93.1% of total sales. Export earnings added ₦11.7 billion to the top line.
The company noted that the “growth in revenue was largely driven by domestic sales,” proving the resilience of its local consumer base.
Gross profit doubled to N36.5 billion as the company successfully outpaced rising input costs through strategic pricing. While the cost of sales rose to N133.2 billion, the margin improvement was significant.
This performance suggests that Cadbury was able to “implement effective pricing strategies” to protect its bottom line against persistent inflation.
The company’s operating income surged by over 240%, reaching N20.5 billion due to aggressive cost-cutting in administrative departments. While marketing expenses rose to support sales, administrative costs were nearly halved.
This shift reflected a “leaner, more efficient business model” that prioritized operational excellence over overhead spending.
A massive reduction in finance costs was the primary catalyst for the profit swing, dropping from ₦34.2 billion to just ₦3.2 billion. This was largely due to the absence of the “massive foreign exchange losses” that devastated the 2024 results.
The stabilization of the Naira provided the necessary breathing room for the company’s recovery.
After accounting for ₦5.1 billion tax credit, the net profit stood at ₦12.08 billion, a stark contrast to the previous year’s heavy loss. Consequently, earnings per share (EPS) jumped to 530 kobo.
This shift “provided a much-needed boost to investor confidence” after a period of extreme volatility for shareholders.
Total assets grew to ₦82.1 billion, while shareholders’ equity expanded significantly to ₦16.4 billion. This capital growth was aided by the year’s profits and “intercompany debt forgiveness from its parent company.” Such restructuring efforts were vital in repairing a balance sheet previously eroded by retained losses.
Despite the recovery, the company still carries ₦25.2 billion in retained losses and continues to monitor currency risks.
However, total liabilities decreased as the firm focused on “de-leveraging and strengthening its financial foundation.” These efforts are aimed at ensuring the company remains stable in a fluctuating economic environment.
Investor reaction has been bullish, with the share price rising nearly 13% year-to-date to ₦67.60. The 2025 results suggest the makers of Bournvita have “successfully adjusted to the ‘new normal’ of the Nigerian economy.”
The focus now shifts toward sustaining these margins and delivering long-term value to the market.
