Beverage Sales, Debt Relief Push Cadbury Nigeria Back to Profit

Cadbury Nigeria Plc returned to profit in 2025, buoyed by strong beverage sales and debt forgiveness from its parent company, Mondelez International.

A review of the company’s financial statements released on Tuesday, January 27, shows that Cadbury Nigeria reported a profit after tax of ₦12.09 billion, compared to the ₦22.22 billion loss in 2024.

Its revenue rose by 31 per cent to ₦169.84 billion from ₦129.17 billion in 2024, while operating activities increased by 245 per cent to ₦20.55 billion.

The company’s basic earnings per share improved to 530 kobo from a loss of 975 kobo in 2024, while total equity also strengthened significantly by 276 per cent to ₦16.47 billion.

Improved beverage sales

Pinnacle Daily analysis of the results reveals that the company’s revenue was driven primarily by its refreshment beverages business, which generated ₦103.65 billion in 2025, led by brands such as Cadbury Bournvita and 3-in-1 Hot Chocolate.

The confectionery segment contributed ₦53.81 billion, supported by brands including TomTom, Buttermint, Candy Caramel, Candy Coffee and Clorets gum, while intermediate cocoa products accounted for ₦10.85 billion.

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Production and sales of Bournvita Biscuits, previously part of its portfolio, have remained suspended since April 1, 2023.

After recording a loss before tax of ₦16.99 billion in 2024, the segment posted a profit before tax of ₦10.63 billion in 2025, accounting for about 62 per cent of Cadbury Nigeria’s total profit before tax of ₦17.27 billion.

Segment revenue rose to ₦103.65 billion from ₦77.45 billion, while net finance costs allocated to the segment dropped sharply from ₦20.56 billion to ₦2.02 billion, reflecting debt restructuring and improved exchange rate outcomes.

Debt forgiveness

Cadbury Nigeria’s recovery was also supported by its relationship with its parent company which holds a 79.39 per cent stake through Cadbury Schweppes Overseas Limited.

It provides technical and management support, for which Cadbury Nigeria accrued ₦707.3 million in royalties and ₦2.44 billion in technical and management fees in 2025.

A key factor underpinning the turnaround was a major balance sheet restructuring in 2024 as the parent company forgave ₦29.74 billion in intercompany debt, which was recognised directly in equity.

It was converted into an additional ₦7.04 billion in loans and interest into equity through the issuance of new shares.

These actions helped address negative equity and reduce borrowings, which stood at ₦47.94 billion at the start of 2024.

As of December 31, 2025, Cadbury Nigeria only owed ₦12.78 billion to related parties within the Mondelez group, while ₦1.62 billion was due from them.

The company also made intercompany loans and interest repayments of about ₦11.97 billion during the year.

Overall, the combination of improved beverage sales, lower finance costs and parent-company support enabled Cadbury Nigeria to exit a loss-making position and post a strong financial recovery in 2025.