Cadbury Nigeria Plc has showcased a remarkable financial turnaround in the first quarter of 2025, reporting a robust profit after tax of N5.97 billion. This achievement stands in stark contrast to the N7.32 billion loss incurred during the same period in 2024, signaling a significant recovery in the company’s financial performance. The driving force behind this resurgence was a substantial 57% surge in revenue, reaching N37.23 billion compared to N23.70 billion in the first quarter of 2024. This impressive revenue growth was achieved despite the prevailing economic headwinds of inflationary pressures and foreign exchange challenges, underscoring the company’s resilience and effective strategies. The positive momentum extended to gross profit, which experienced a remarkable 143% increase, reaching N12.15 billion compared to N4.99 billion in the prior year. This significant improvement in profitability reflects the company’s ability to manage costs and optimize its operations in a challenging economic environment. Furthermore, Cadbury recorded other income of N390.78 million, a positive reversal from the N11.49 million loss reported in the corresponding period of 2024, further bolstering the company’s financial performance.
Analyzing the company’s operating expenses reveals a moderate increase, with selling and distribution expenses rising to N2.26 billion from N1.48 billion. This increase is likely attributable to the higher sales volume achieved during the quarter. Conversely, administrative expenses decreased to N597.85 million from N737.33 million, indicating effective cost control measures implemented by the company. As a result of these factors, operating profit soared to N9.69 billion, a significant improvement from N2.76 billion in the first quarter of 2024. This substantial increase in operating profit demonstrates the company’s ability to translate revenue growth into enhanced profitability. A key factor contributing to this positive performance was the significant reduction in finance costs. In the first quarter of 2024, Cadbury incurred a net finance cost of N13.22 billion, which heavily impacted the bottom line. However, this cost was dramatically reduced to N1.14 billion in the first quarter of 2025, mitigating the impact of borrowing and exchange-related expenses.
The culmination of these positive developments resulted in a pre-tax profit of N8.54 billion, a remarkable turnaround from the N10.46 billion pre-tax loss recorded in the previous year. After accounting for income tax expenses of N2.56 billion, Cadbury achieved a net profit of N5.98 billion. This impressive profit figure reflects the company’s successful efforts in navigating economic challenges and implementing effective strategies to drive growth and profitability. The company’s earnings per share reached 262 kobo, a significant improvement from the loss per share of 321 kobo reported in the first quarter of 2024. This positive development signifies increased value for shareholders and underscores the company’s commitment to delivering strong financial performance.
Turning to the balance sheet, Cadbury’s total assets increased to N84.33 billion from N72.44 billion as of December 2024, indicating improved working capital and investment levels. This growth in total assets reflects the company’s efforts to strengthen its financial position and invest in future growth opportunities. Inventory levels experienced a significant increase, nearly tripling to N32.66 billion from N13.81 billion. This substantial increase in inventory may be attributed to higher production volumes in anticipation of increased demand and potentially as a hedge against future price increases. However, cash and cash equivalents declined significantly from N16.34 billion in December 2024 to N6.25 billion in March 2025. This decrease in cash reserves likely reflects increased investment in inventory, operational expenses related to increased production, and potentially debt repayment activities during the quarter.
Despite the decrease in cash, Cadbury made positive strides in reducing its retained losses, which narrowed from N37.30 billion to N31.32 billion. This improvement suggests that the company’s ongoing recovery is steadily improving its financial health and generating value for shareholders. The reduction in retained losses demonstrates the company’s ability to generate profits and strengthen its financial position, which is crucial for long-term sustainability and growth. Overall, Cadbury’s first-quarter results paint a picture of a company on a strong recovery trajectory. The significant improvements in revenue, profitability, and balance sheet metrics demonstrate the effectiveness of the company’s strategies and its resilience in navigating challenging economic conditions.
Looking at the broader context of Cadbury’s financial performance, it’s important to consider the reported full-year results for 2024. The company recorded a loss after tax of N10.4 billion for the year ending December 31, 2024. While this represents a 45% reduction compared to the N19.1 billion loss in 2023, it underscores the challenges the company faced throughout that year. The improved full-year results, driven primarily by a 47% reduction in loss before tax, indicate that the company was already implementing measures to address its financial performance even before the significant turnaround witnessed in the first quarter of 2025. This positive momentum from 2024, coupled with the robust first-quarter results of 2025, provides a strong foundation for continued growth and profitability in the future. The company’s ability to navigate the economic headwinds and deliver strong performance in the first quarter of 2025 signifies a positive outlook for the remainder of the year and reinforces confidence in its long-term prospects.
