June 17, 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 (bn) compared to Q1 2025 Revenue of ₦37.2bn. The topline growth was driven by domestic sales, which accounted for 97.7% of total Revenue and increased by 9.3% y/y to ₦38.9bn (Q1 2025: ₦35.6bn). Despite the top-line expansion, profitability came under significant pressure. Operating Profit declined by 51.3% y/y to ₦4.7bn, down from ₦9.7bn in Q1 2025, primarily due to a sharp increase in Cost of Sales and higher marketing expenses. Consequently, Profit After Tax fell to ₦3.6bn, compared with ₦6.0bn recorded in the same period last year.

We project FY 2026 Revenue to reach ₦195.8bn, representing a 16.1% y/y increase from ₦168.7bn in FY 2025, driven primarily by strong domestic sales. We expect the company to gradually offset the cost pressures experienced in the first quarter, resulting in an improvement in profitability over the remainder of the year. Gross Profit is projected to rise to ₦41.8bn from ₦35.5bn in FY 2025, while Operating Profit is expected to edge higher to ₦19.9bn, compared with ₦19.6bn in the previous year. Profit Before Tax is forecast to increase to ₦20.8bn from ₦17.4bn in FY 2025.

At its current EV/EBITDA multiple of 9.41x, Cadbury trades at a slight discount to the Middle East and Africa (MEA) peer median of 9.55x. We maintain our BUY recommendation on the stock and revise our target price upward to ₦86.42 per share from ₦83.08 per share, implying a potential upside of 25.2% from the current market price of ₦69.00 per share.

To read full report, click on the link below​​

​​​​​​​​​CADBURY Q1 2026 Company Update.pdf