Cadbury Nigeria reports 20% decline in H1 2026 profit
Cadbury Nigeria recorded higher revenue and export growth during the first half of 2026, but rising operating expenses reduced overall profitability.
NIGERIA – Cadbury Nigeria Plc has reported a 20.3% decline in profit after tax for the first half of 2026 as rising operating expenses offset gains from higher sales and improved gross margins.
The company recorded profit after tax of N8.1 billion (US$ for the six months ended June 30, 2026, compared with N10.2 billion (US$ during the corresponding period of 2025.
Revenue increased by 8% to N83.3 billion (US$61.13M) from N77.3 billion (US$56.72M), supported by stronger performances across several business segments. Confectionery sales rose by 23.2% to N29.9 billion (US$21.94M), while sales of intermediate cocoa products more than doubled to N6.5 billion from N3.2 billion (US$2.35M), driven by stronger export demand.
However, sales in the refreshment beverages category declined by 5.6% to N47 billion.
Export sales increased significantly to N7.2 billion from N3.2 billion, while domestic sales rose by 2.8% to N76.1 billion.
Cost of sales increased by 6.9% to N59.2 billion from N55.4 billion, enabling gross profit to grow by 10.3% to N24.1 billion from N21.9 billion. Gross profit margin also improved to 28.9% from 28.3% a year earlier.
Despite the stronger gross performance, operating expenses increased sharply during the period. Selling and distribution expenses more than doubled to N10.8 billion from N4.9 billion, while administrative expenses rose to N1.1 billion from N661.5 million.
Other expenses also increased substantially, reflecting the impact of a N418 million penalty charge. Consequently, operating profit declined by 28% to N11.8 billion from N16.3 billion.
The company benefited from a reduction in finance costs during the period. Net finance costs declined to N187 million from N1.7 billion in the corresponding period of 2025, supported by an unrealised foreign exchange gain of N871.8 million and lower borrowing costs.
Even with this improvement, profit before tax declined by 20.3% to N11.6 billion from N14.5 billion.
Commenting on the results, Managing Director Ayman Fahmy Gaafar said the company continued to face difficult market conditions.
“Despite these challenges, Cadbury Nigeria remains committed to delivering value to its stakeholders and will continue to drive business fundamentals, while increasing its Go-to-Market (GTM) capabilities,” he said.
Alongside the financial results, the company announced the appointment of economist and former presidential adviser Rasaq Adedoyin Salami as chairman following the resignation of Adedotun Sulaiman.
Cadbury Nigeria also appointed Uwa Osa-Oboh as an independent non-executive director as part of efforts to strengthen its corporate governance framework.
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