October 30, 2025/CSL Report

Financial Highlights

Revenue Performance:

• Revenue: ₦119.25bn (+33.2% y/y | 9M 2024: ₦89.53bn).
• Q3 2025 Revenue: ₦42.00bn (+4.9% q/q | Q2 2025: ₦40.02bn).
• Refreshment Beverages segment grew 46.1% y/y to ₦77.97bn.
• Confectionery segment increased 43.4% y/y to ₦36.88bn.
• Domestic sales: ₦114.20bn (+44.8% y/y; 95.8% of total); Export sales: ₦5.05bn (–52.7% y/y; 4.2% of total).

Margins & Cost Efficiency:

• Cost of Sales: ₦91.50bn (+22.4% y/y) | Cost-to-sales ratio: 76.7% (down 6.8ppts y/y from 83.5%).
• Q3 2025 Cost of Sales: ₦36.10bn (+19.1% q/q), leading to Q3 Gross Profit drop of 39.3% q/q to ₦5.89bn.
• Gross Profit: ₦27.75bn (+87.9% y/y | 9M 2024: ₦14.77bn) | Gross Margin: 23.3% (up 6.8ppts y/y from 16.5%).

Operating Performance:

• OPEX: ₦11.50bn (+55.3% y/y | OPEX ratio: 9.6%, +1.4ppts).
• EBITDA: ₦18.35bn (+138.1% y/y | EBITDA Margin: 15.4%, up 6.8ppts).
• EBIT: ₦15.90bn (+154.5% y/y | EBIT Margin: 13.3%, up 6.4ppts).

Finance & Earnings:

• Net Finance Cost: ₦2.07bn (–91.1% y/y | 9M 2024: ₦23.18bn).
• Realized FX gain: ₦38m (vs. ₦15.0bn loss in 9M 2024).
• Unrealized FX gain: ₦1.62bn (vs. ₦3.86bn loss in 9M 2024).
• Driven by the effect of intercompany loan forgiveness and equity conversion in FY 2024

Profitability:

• PBT: ₦13.83bn (vs. ₦16.94bn loss in 9M 2024).
• PAT: ₦9.68bn (vs. ₦11.86bn loss in 9M 2024; +181.6% y/y).
• Q3 2025: PBT loss ₦709m | PAT loss ₦496m (Q2 2025: ₦5.99bn & ₦4.20bn profit).

Valuation & Outlook:

• Strong earnings rebound supported by domestic demand, margin recovery, and FX exposure clean-up. Near-term cost pressures persist, but fundamentals and valuation remain attractive.
• Rating: BUY
• Target Price: ₦83.08/share
• Current Price: ₦69.50/share
• Upside Potential: 19.54%

To read full report, click on the link below​

​CADBURY 9M 2025 Quick Take.pdf​​​​​​​​​

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