Cadbury Nigeria Plc swung to a profit after tax of N2.03 billion in the third quarter of 2026, compared with a loss of N495.96 million in the same quarter of 2025, as lower production costs improved margins on flat sales growth. The manufacturer of Bournvita and TomTom products reported quarterly revenue of N43.34 billion, up 3.2 percent from N41.99 billion a year earlier, according to its unaudited financial statements.
The improvement stemmed from a sharp fall in the cost of sales, which dropped 14.3 percent to N30.96 billion from N36.10 billion, despite the rise in revenue. This drove gross profit more than double to N12.38 billion from N5.89 billion, lifting the gross profit margin to 28.6 percent from 14 percent. Operating profit recovered to N2.54 billion from an operating loss of N374.37 million in the prior-year period, while profit before tax reached N2.90 billion from a loss of N708.51 million.
The gains were partially offset by a steep rise in selling and distribution expenses, which climbed to N9.28 billion from N4.18 billion. Administrative expenses, however, fell to N514.77 million from N1.75 billion. The company also benefited from a shift in its financial position, recording net finance income of N362.91 million in the quarter compared with a finance cost of N334.15 million in the prior-year period.
Over the nine months to September 2026, profit after tax rose 4.8 percent to N10.14 billion from N9.68 billion, while revenue increased 6.2 percent to N126.69 billion from N119.25 billion. However, operating profit fell 10 percent to N14.31 billion as higher selling and distribution expenses more than doubled to N20.05 billion from N9.08 billion, offsetting the gains from lower production costs.
The company's balance sheet strengthened, with borrowings declining to N14.90 billion as of September 30, 2026, from N22.81 billion at year-end 2025, and total equity rising to N23.56 billion from N13.42 billion. Cash and cash equivalents fell to N10.67 billion from N15.02 billion, while inventories rose to N23.40 billion from N17.36 billion. Cadbury's shares closed at N57 on the Nigerian Exchange on the last trading day, down 4.84 percent from a year-start price of N59.90.