Cadbury Nigeria Plc has released its unaudited financial statements for the year ended December 31, 2025, revealing a remarkable turnaround with the company returning to profitability after posting significant losses in the previous year, news.ng reports.
The food and beverage manufacturer recorded a profit after tax of N12.09 billion for FY 2025, a stunning reversal from the N22.92 billion loss reported in FY 2024.
This represents a 153% improvement in bottom-line performance, marking one of the most significant corporate turnarounds in the Nigerian consumer goods sector.
The unaudited financial statements were approved by the Board of Directors in January 2026 and signed by Mr Adeotun Sulaiman, MFR (Chairman), Folake Ogundipe (Interim MD) and Victoria Abhigbe (Financial Controller).
Basic earnings per share surged to 530 kobo compared to a loss per share of 973 kobo in the prior year, delivering positive returns to shareholders after a challenging 2024.
The company’s fourth quarter performance was particularly strong, with Q4 2025 profit reaching N2.41 billion compared to N1.43 billion in Q4 2024, reflecting sustained momentum in the final months of the year.
Cadbury Nigeria achieved exceptional top-line growth, with total revenue surging 31% to N169.84 billion from N129.17 million in FY 2024. This impressive revenue expansion demonstrates strong demand for the company’s portfolio of beverages, confectionery, and food products.
Furthermore, quarterly revenue performance showed acceleration, with Q4 2025 revenue of N50.59 billion representing a 28% increase from N39.66 billion in Q4 2024, indicating sustained consumer demand and effective market penetration strategies.
Cost of sales increased to N133.24 billion from N110.94 billion, but remained well-controlled relative to revenue growth. As a result, gross profit expanded significantly to N36.60 billion, up 95% from N18.23 billion in FY 2024.
The company’s gross profit margin improved to 21.5% from 14.1% in the previous year, reflecting better pricing power, product mix optimisation, and operational efficiencies despite inflationary pressures on input costs.
Results from operating activities reached N20.55 billion compared to N5.96 billion in FY 2024, representing a 245% improvement. This demonstrates the company’s ability to effectively manage its core business operations.
Operating expenses were maintained at reasonable levels:
– Selling and distribution expenses: N12.22 billion (up from N6.27 million)
– Administrative expenses: N4.34 billion (up from N6.05 billion, showing improved efficiency)
Other income contributed N487.9 million compared to N21.9 million previously, providing additional support to the bottom line.
More importantly, net finance costs improved dramatically to N3.28 billion from N34.89 billion in FY 2024, representing a 91% reduction. This substantial decrease in finance charges, likely due to debt reduction and improved treasury management, was a critical factor in the company’s return to profitability.
In addition, profit before tax reached N17.27 billion compared to a loss of N28.33 billion in the prior year. After accounting for the income tax credit of N5.18 billion (compared to a credit of N5.41 billion previously), the company delivered its strong N12.09 billion net profit.
Total Assets: Cadbury Nigeria’s total assets grew 10% to N94.54 billion from N72.41 billion as of December 31, 2024, reflecting business expansion and working capital build-up.
Non-Current Assets: Property, plant and equipment increased to N19.43 billion from N16.71 billion, indicating continued investment in production capacity. Right-of-use assets totaled N266.4 million, while intangible assets reached N70.7 million. Total non-current assets stood at N36.04 billion compared to N33.09 billion previously.
Current Assets: The company’s working capital position strengthened significantly, with total current assets surging to N46.11 billion from N30.35 billion:
– Inventories: N17.39 billion (up from N13.81 billion)
– Trade and other receivables: N13.07 billion (up from N8.26 billion)
– Prepayments: N653.1 million (down from N950.9 million)
– Cash and cash equivalents: N12.99 billion (up substantially from N3.83 billion)
The dramatic increase in cash position to N13 billion demonstrates vastly improved liquidity and cash generation capability.
In a transformational development, shareholders’ equity swung to a positive N16.47 billion from negative N4.38 billion in FY 2024. This equity restoration is a critical milestone that:
– Re-establishes financial stability
– Restores investor confidence
– Provides foundation for future growth
The equity structure comprises:
– Share capital: N1.14 billion (unchanged)
– Share premium: N7.11 billion (unchanged)
– Other reserves: N33.18 billion (unchanged)
– Share-based payment reserve: N250.3 million (unchanged)
– Retained loss: N25.21 billion (improved from N37.30 billion deficit)
Total liabilities declined to N65.68 billion from N68.06 billion, demonstrating effective debt management:
Non-Current Liabilities: Reduced to N856.2 million from N823.1 million:
– Employee benefits: N840.6 million
– Lease liabilities: N15.6 million
Current Liabilities: Decreased to N64.82 billion from N67.24 billion:
– Borrowings: N22.81 billion (down significantly from N32.81 billion)
– Current tax liabilities: N4.69 billion (up from N771.4 million)
– Trade and other payables: N36.98 billion (up from N33.66 billion)
– Lease liabilities: N341.9 million (up from N1.7 million)
The substantial N10 billion reduction in borrowings from N32.81 billion to N22.81 billion represents a 30% decrease in debt burden, significantly strengthening the company’s financial flexibility.
Cadbury Nigeria’s FY 2025 results represent a comprehensive business turnaround characterised by:
1. Revenue Momentum: 31% growth demonstrates strong brand equity and market position
2. Margin Recovery: Gross margin expansion of 740 basis points shows pricing power
3. Cost Management: Improved operational efficiency despite an inflationary environment
4. Debt Reduction: 30% decrease in borrowings reduces financial risk
5. Liquidity Transformation: Cash position tripled to N13 billion
6. Equity Restoration: Return to positive equity rebuilds financial foundation
The company’s performance reflects successful execution of operational reforms, effective management of foreign exchange challenges, improved supply chain efficiency, and renewed consumer confidence in its brands, including Bournvita, Tom Tom, and Cadbury chocolate products.
With restored profitability, positive equity, reduced debt, and strong cash generation, Cadbury Nigeria appears well-positioned to sustain its recovery trajectory and potentially resume dividend payments to shareholders in the near term.
