Cadbury Nigeria Plc began 2026 with weaker earnings, even though revenue increased.
The company reported a pre-tax profit of ₦5.20 billion in Q1 2026.
This marks a 39.2% decline from ₦8.54 billion in Q1 2025.
It filed the unaudited results for the three months ended March 31, 2026.
It submitted the report to the exchange on April 29, 2026.
Revenue grew by 7% to ₦39.83 billion during the period.
Be careful: beverages and confectionery segments drove this growth in Nigeria.
Refreshment beverages generated ₦24.03 billion in sales.
Meanwhile, confectionery sales contributed ₦15.15 billion.
However, rising costs reduced the benefit of higher revenue.
Cadbury Cost Pressure Rises
Cost of sales climbed 15.5% to ₦28.94 billion.
As a result, costs outpaced revenue growth and reduced margins.
Gross profit dropped 10.4% to ₦10.89 billion.
In contrast, it stood at ₦12.15 billion in Q1 2025.
Gross margin also weakened to 27.3%.
Previously, it reached 32.6% in the same period last year.
Operating Expenses Surge
At the same time, operating costs surged sharply.
Selling and distribution expenses jumped 128.5% to ₦5.16 billion.
This happened because the company increased marketing and logistics spending.
Administrative expenses also rose 21.2% to ₦724.78 million.
Consequently, overhead pressure increased further.
On the positive side, finance costs declined significantly.
Finance Costs Fall
Finance costs fell 58.2% to ₦477.92 million.
Lower borrowing levels helped the company reduce interest expenses.
However, these savings could not offset rising operational costs.
Therefore, pre-tax profit fell 39.2% to ₦5.20 billion.
Post-tax profit also dropped 39.2% to ₦3.64 billion.
Balance Sheet And Liquidity
Meanwhile, the balance sheet showed mixed movements.
Total assets increased slightly by 1.8% to ₦76.74 billion.
Read Also: NGX ETF Sector Weakens Across Board In Weekly Trading Ending Apr 24
This indicates limited expansion in operations.
At the same time, total liabilities declined 3.6% to ₦59.68 billion.
The company reduced borrowings to strengthen its position.
In addition, equity rose 27% to ₦17.06 billion.
Retained earnings improved and strengthened the capital base.
However, cash flow weakened during the period.
Cash and cash equivalents fell 41.6% to ₦8.76 billion.
It stood at ₦15.01 billion in the previous year.
Following the results, the market reacted negatively.
The share price fell 10% to ₦66.15 on April 29, 2026.
This marked the maximum daily loss allowed on the exchange.
Earlier, the stock opened the year at ₦59.90.
Nevertheless, it still gained 22.7% year-to-date.
Currently, the company holds a market value of about ₦168 billion.
It remains a mid-tier player on the Nigerian Exchange.
In 2025, the company staged a strong recovery.
It recorded a pre-tax profit of ₦17.2 billion after a 2024 loss.
It also grew revenue to ₦169.8 billion, up 31.49% year-on-year.
Now, investors closely watch cost control and profit recovery.
Ultimately, future results will determine whether the rebound continues.
