May 4, 2026/CSL Report
Cadbury Nigeria Plc reported a modest improvement in Q1 2026 performance, with Revenue rising by 7.0% year-on-year (y/y) to ₦39.8 billion (Q1 2025: ₦37.2 billion). Growth was primarily driven by domestic sales, which accounted for 97.7% of total Revenue and increased by 9.3% y/y to ₦38.9 billion (Q1 2025: ₦35.6 billion). By segment, the Refreshment Beverages category declined slightly by 2.5% y/y to ₦24.0 billion, while the Confectionery segment recorded strong growth of 38.1% y/y to ₦15.1 billion. In contrast, export sales, largely comprising Intermediate Cocoa Products, fell sharply by 59.9% y/y to ₦651 million, contributing just 1.6% to total Revenue.
Jump in Cost Weakens Margins
Cost of sales increased by 15.4% y/y to ₦28.9bn (Q1 2025: ₦25.1bn), rising faster than revenue. This was driven in our view by rising raw material costs plus import bottlenecks in the elevated inflationary environment. This led to a 5.3 percentagepoint jump in the cost-to-sales ratio to 72.7% from 67.4% in Q1 2025. Consequently, Gross Profit declined 10.4% y/y to ₦10.9bn from ₦12.2bn in the prior year, with gross
margin shrinking to 27.3% (Q1 2026: 32.6%).
Financial Highlights:
- Revenue: +7.0% y/y to ₦39.8BN
- Cost of Sales: +15.4% y/y to ₦28.9BN
- OPEX: +105.7% y/y to ₦5.9BN
- EBITDA: -46.3% y/y to ₦5.5BN
- Operating Profit: -51.3% y/y to ₦4.7BN
- Profit before Tax: ₦5.2BN vs ₦8.5BN in Q1 2025
Stock Rating: Buy (UR) |Target Price: ₦83.08/s (UR)
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