Cadbury Nigeria Plc saw its cocoa export revenue drop by over 50% between January and September, revealing mounting pressures on the company.
Consequently, foreign sales fell 52.7% to ₦5.05bn from ₦10.66bn, causing a loss of about ₦5.61bn compared with last year.
Cadbury Cocoa Export Revenue Plummets
This revenue includes the company’s exports of cocoa powder, butter, liquor, and cake.
Earlier, exports boomed after the 2023 naira devaluation, which more than doubled Cadbury’s foreign sales from ₦1.48bn to ₦3.13bn.
However, rising production costs, supply-chain disruptions, and limited access to working capital eroded the company’s potential price advantage.
Domestic Market Strength
Meanwhile, domestic sales strengthened, rising 44.8% to ₦114.19bn, partially offsetting the decline in overseas revenue.
Local cocoa output fell due to poor weather and black pod disease outbreaks, further challenging production.
Nigeria produces 315,000MT of cocoa, ranking fourth in Africa; nevertheless, analysts expect a 10% drop soon.
In addition, cocoa prices recently hit a 20-month low, which intensified pressure on Cadbury’s overall revenue mix.
Despite these challenges, the company increased overall revenue to ₦119.24bn from ₦89.52bn, with beverages contributing 65.4% of sales.
Read Also: Ellah Lakes Extends Public Offer To Dec 19
On the other hand, the biscuit division generated no revenue during the review period, two years after its launch.
Importantly, Cadbury returned to profit, earning ₦9.68bn compared with a ₦11.86bn loss last year.
Consequently, net margin rose to 8.12%, return on assets climbed to 68.85%, and return on equity reached 11.59%.
Operational Resilience
During Q3, the company posted a ₦495m net loss due to rising selling, distribution, and administrative costs.
As a result, operating profit fell to a ₦374m loss, down from ₦1.5bn in the prior year.
Nevertheless, gross profit surged 88% to ₦27.75bn, while operating profit jumped 154% to ₦15.9bn, reflecting cost management and efficiency.
Moreover, naira stability reduced finance costs to ₦2.07bn from ₦23.18bn, easing forex and interest losses.
At the same time, the cost of sales rose 22.9% to ₦91bn, driven by higher input and logistics expenses.
The company also expanded total assets to ₦83.48bn, strengthened shareholders’ equity to ₦14.06bn, and slightly reduced borrowings.
Meanwhile, cash declined to ₦11.13bn from ₦16.34bn because of loan repayments and higher working capital requirements.
Analysts now expect Cadbury to continue growing revenue, citing stronger domestic demand and improved FX stability.
Overall, Cadbury’s 2025 story demonstrates adaptation, as domestic sales and operational efficiency offset declining export revenue.
