Turnaround Marked by Significant Revenue Growth and Improved Profitability
Cadbury Nigeria Plc has announced a significant financial turnaround in its first-quarter results for 2025, reporting a pre-tax profit of N8.5 billion. This positive performance marks a substantial recovery from the N10.4 billion loss recorded in the corresponding quarter of 2024, primarily fueled by a notable surge in domestic sales.
The company's revenue experienced impressive growth, reaching N37.2 billion, representing a substantial 57.11% increase compared to the N23.6 billion reported in the first quarter of the previous year. Domestic sales were the primary driver of this revenue surge, contributing N35.6 billion, up from N21.9 billion in Q1 2024. Export sales also contributed to the overall revenue, amounting to N1.6 billion.
While the cost of sales also saw an increase, rising to N25.07 billion from N18.7 billion in the same period last year, the growth in revenue significantly outpaced this increase. Consequently, Cadbury Nigeria's gross profit witnessed a remarkable surge to N12.1 billion, demonstrating an impressive growth of 143.46% compared to the N4.9 billion recorded in the first quarter of 2024.
Further bolstering profitability, the company's other income climbed to N390.7 million, recovering from a loss of N11.4 million in the prior year. This improvement was largely attributable to insurance claims amounting to N388.8 million.
On the expenditure side, selling and distribution expenses saw a considerable increase, rising to N2.2 billion, a 52.39% jump year-over-year. However, in a positive move towards operational efficiency, Cadbury Nigeria successfully reduced its administrative expenses to N597.8 million, down from N737.3 million in the same quarter of 2024.
The company's core operations demonstrated a strong performance, with profits from operations reaching N9.6 billion, marking a substantial increase of 250.98% from the N2.7 billion recorded in the first quarter of the previous year. This significant improvement underscores the effectiveness of the company's strategies in driving profitability from its primary business activities.
Examining the balance sheet, Cadbury Nigeria's total assets grew to N84.3 billion, up from N72.4 billion reported in Q1 of 2024, indicating a positive expansion in the company's overall financial standing. Furthermore, retained losses showed improvement, decreasing to a negative N31.3 billion, a better outcome compared to the negative N37.2 billion recorded in the first quarter of 2024. This suggests a positive trajectory in the company's efforts to address accumulated losses.
Key Financial Highlights for Q1 2025:
- Revenue: N37.2 billion, a 57.11% increase year-over-year (YoY)
- Cost of sales: N25 billion, a 34.06% increase YoY
- Gross profit: N12.1 billion, a 143.46% increase YoY
- Selling and distribution expenses: N2.2 billion, a 52.39% increase YoY
- Operating income: N9.6 billion, a 250.98% increase YoY
- Pre-tax profit: N8.5 billion, an 81.69% increase YoY
- Total assets: N84.3 billion, a 16.41% increase YoY
As of the trading day on April 28, 2025, Cadbury Nigeria's stock was priced at N29.25, demonstrating a year-to-date performance of 36.05%. This positive market sentiment reflects the encouraging financial results and the company's apparent recovery. It is worth noting that in the entire year of 2024, the company recorded a year-to-date performance of 13.16%, highlighting the significant positive shift in investor perception in the current year.
The strong first-quarter performance indicates a positive trajectory for Cadbury Nigeria, driven by robust domestic demand and effective cost management in certain areas. While increased selling and distribution expenses remain a factor, the significant growth in revenue and gross profit has propelled the company back into profitability. Investors will be keenly watching if Cadbury Nigeria can sustain this positive momentum throughout the remainder of the year.