Cadbury Nigeria’s dramatic return to profitability in 2025 was driven less by a sudden boom in demand and more by a crucial shift in its cost structure the sharp collapse of foreign exchange related losses that had battered earnings a year earlier.
The food and beverages maker posted a pretax profit of ₦17.2 billion for the 2025 financial year, swinging decisively from a ₦28.3 billion pretax loss in 2024, according to its unaudited results released on January 27, 2026. At the heart of the turnaround was a steep drop in net finance costs, which fell to ₦3.2 billion from a staggering ₦34.2 billion in the prior year.
That single line item reshaped the company’s income statement.
In 2024, FX losses and high finance charges overwhelmed Cadbury’s operating performance, pushing the company deep into the red despite steady sales. In 2025, easing currency pressures and reduced borrowings significantly lightened that burden, allowing operating gains to finally translate into bottom-line profit.
Revenue growth provided the momentum, but finance relief sealed the recovery.
Cadbury’s revenue rose 31.5% year-on-year to ₦169.8 billion, driven largely by domestic sales, which accounted for over 93% of turnover. While cost of sales climbed alongside higher volumes, stronger pricing power helped gross profit more than double to ₦36.5 billion.
However, it was after operating activities that the real inflection point appeared. Administrative expenses were cut nearly in half, falling to ₦3.3 billion, while operating profit surged nearly 245% to ₦20.5 billion. With finance costs no longer eroding those gains, pretax profit swung firmly into positive territory.
The impact of lower FX pressure was also visible in the balance sheet. Borrowings declined to ₦22.8 billion from ₦32.8 billion, reducing exposure to currency volatility. Shareholders’ equity expanded sharply to ₦16.4 billion, reflecting improved earnings quality and balance sheet repair, even as retained losses remain sizeable at ₦25.2 billion.
The recovery extended into the final quarter of the year, with fourth-quarter pretax profit rising nearly 69% to ₦3.4 billion, underscoring that the improvement was not a one-off accounting effect but a sustained shift in financial conditions.
Cadbury’s 2025 performance highlights a broader reality facing Nigerian manufacturers: profitability can hinge as much on currency stability and financial structure as on sales growth. While revenue expansion and cost discipline played important roles, the decisive factor was the easing of FX-driven finance losses that had previously overwhelmed the business.
Investors appear to be taking note. Cadbury shares are up 12.85% year-to-date on the Nigerian Exchange, trading at ₦67.60, as the market weighs whether the company’s improved earnings can be sustained in an economy where currency risk remains a persistent threat.
Source: Nairametrics