Cadbury Nigeria’s cocoa export revenue plunges 53% as currency strain hits overseas sales

NIGERIA – Cadbury Nigeria Plc has reported a sharp decline in cocoa export revenue for the nine months ending September, highlighting the growing strain on Nigerian manufacturers as currency instability, rising logistics costs, and weaker global demand continue to weigh on international sales.  

Export revenue dropped 52.7 percent to N5.05 billion (US$3.47M), down from N10.66 billion (US$7.33M) in the same period last year, according to the company’s latest financial statements. 

The revenue covers the company’s production and sale of cocoa powder, cocoa butter, cocoa liquor, and cocoa cake. This steep fall marks a reversal from the export boom seen after the significant devaluation of the naira in 2023, which had driven Cadbury’s foreign sales from N1.48 billion (US$1.02M) in 2022 to N3.13 billion (US$2.15M) in 2023, and further to their peak last year. 

Meanwhile, domestic demand proved more resilient. Revenue from cocoa products sold within Nigeria rose 44.8 percent to N114.19 billion (US$78.50M), compared to N78.86 billion (US$54.21M) recorded in the corresponding period of 2024.  

However, local cocoa processors continue to face challenges, including reduced bean output linked to adverse weather conditions and an outbreak of black pod disease in key growing regions. 

Cocoa prices have also fallen to a 20-month low, adding pressure to Cadbury’s export portfolio and intensifying the company’s reliance on the domestic market. This shift comes at a time when Nigerian consumers are grappling with high inflation and eroding purchasing power, constraining discretionary spending. 

Overall revenue increased to N119.24 billion (US$81.97M) from N89.52 billion (US$61.54M) a year earlier, with refreshment beverages contributing 65.4 percent of the total. The biscuit division, launched two years ago, reported no revenue during the review period. 

Return to profitability 

Despite the contraction in export earnings, the company recorded its first profit in two years, posting N9.68 billion compared to a loss of N11.86 billion (US$8.15M) in the same period last year.  

However, Cadbury reported a net loss of N495 million (US$ in the third quarter, driven by higher selling, distribution, and administrative expenses amid a challenging macroeconomic environment. This contributed to an operating loss of N374 million (US$ for the quarter, compared to a profit of N1.5 billion (US$1.03M) the previous year. 

Gross profit grew 88 percent to N27.75 billion (US$19.08M) from N14.77 billion (US$10.15M), supported by improved pricing and production efficiencies. Operating profit rose sharply to N15.9 billion (US$10.93M), up 154 percent from N6.25 billion (US$4.3M) in 2024.  

Stabilization of the naira helped reduce net finance costs to N2.07 billion (US$1.42M) from N23.18 billion (US$15.93M), reflecting lower foreign exchange losses and declining interest expenses. 

Cadbury’s total assets increased to N83.48 billion (US$57.39M) from N72.44 billion (US$49.8M) in 2024, driven by higher inventories and expanded property, plant, and equipment. Shareholders’ equity also strengthened, rising to N14.06 billion (US$9.67M) from N4.38 billion (US$3.01M).  

Cash and cash equivalents fell to N11.13 billion (US$ from N16.34 billion (US$ due to loan repayments and increased working capital requirements, while borrowings moderated to N30.19 billion (US$20.75M) from N32.81 billion (US$22.56M). 

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