After a turbulent year, Cadbury Nigeria Plc has returned to profitability in dramatic fashion, posting a ₦5.9 billion pre-tax profit in the second quarter of 2025, a sharp turnaround from the ₦3.4 billion loss reported in the same period last year.
The company's Q2 rebound capped a strong first half (H1) performance, with half-year profit reaching ₦14.5 billion, a complete reversal from the ₦13.8 billion loss reported in H1 2024. The surge was largely attributed to robust sales growth and a significant reduction in net finance costs.
Revenue and Profit Margins Surge
Cadbury’s Q2 revenue jumped 44.25% year-on-year to ₦40 billion, compared to ₦27.7 billion in the same quarter of 2024. This growth momentum pushed half-year revenue to ₦77.2 billion, representing a 50.17% increase from the previous year.
Despite a 31% rise in cost of sales to ₦30.3 billion, gross profit more than doubled to ₦9.7 billion, up from ₦4.5 billion in Q2 2024—a 111.2% year-on-year increase.
Operating Performance and Cost Management
While selling and distribution expenses rose by 38.53% to ₦2.6 billion, the company still managed to deliver a remarkable operating profit of ₦6.5 billion—a 234.68% jump from ₦1.9 billion in Q2 of the previous year.
A key driver of bottom-line growth was the dramatic reduction in finance costs. Net finance expenses, primarily interest on borrowings, fell to ₦593.7 million, down from ₦5.3 billion in Q2 2024. This easing of financial pressure significantly improved the company's earnings trajectory.
Strengthened Balance Sheet
Cadbury also made headway in improving its balance sheet. Total assets rose to ₦87.5 billion, reflecting a 20.90% increase year-on-year, while retained losses were trimmed to ₦27.1 billion, down from ₦37.2 billion at the end of 2024.
Share Performance Reflects Investor Confidence
The market has responded positively to the company’s improved fundamentals. As of July 29, 2025, Cadbury shares were priced at ₦70.95 on the Nigerian Exchange (NGX)—translating to a 230% year-to-date gain.
Key Financial Highlights (Q2 2025 vs Q2 2024):
- Revenue: ₦40.0 billion (+44.25%)
- Cost of Sales: ₦30.3 billion (+30.96%)
- Gross Profit: ₦9.7 billion (+111.20%)
- Selling & Distribution Expenses: ₦2.6 billion (+38.53%)
- Operating Profit: ₦6.5 billion (+234.68%)
- Pre-tax Profit: ₦5.9 billion (+275.07%)
- Total Assets: ₦87.5 billion (+20.90%)
- Retained Losses: ₦27.1 billion (Improved from ₦37.2 billion in Dec 2024)
With consumer demand rebounding and financing costs easing, Cadbury Nigeria's strong second-quarter performance signals a resilient recovery, positioning the company for continued growth in the second half of the year.