August 3, 2026/CSL Update
Financial Highlights:
- Revenue: +7.9% y/y to ₦83.3bn
- Cost of Sales: +6.9% y/y to ₦59.3bn
- OPEX: +112.8% y/y to ₦11.8bn
- EBITDA: -23.8% y/y to ₦12.2bn
- Operating Profit: -27.7% y/y to ₦11.8bn
- Profit Before Tax: -20.3% y/y to ₦11.6bn
Cadbury Nigeria Plc (Cadbury) delivered mixed H1 2026 performance, with modest revenue growth and improved gross margin offset by a sharp increase in operating expenses. Revenue rose by 7.9% year-on-year (y/y) to ₦83.3 billion (bn) from ₦77.3bn in H1 2025. The growth was primarily driven by export sales which surged by 124.3% y/y to ₦7.2bn, contributing only 8.7% of total revenue. Meanwhile, domestic sales accounted for 91.3% of total revenue, increasing by 2.8% y/y to ₦76.1bn (H1 2025: ₦74.0bn). On a quarterly basis, Revenue increased 9.2% quarter-on-quarter (q/q) to ₦43.5bn, reflecting improved sales momentum in Q2 2026.
Gross Margin Improves Marginally
Cost of Sales rose by 6.9% y/y to ₦59.2bn from ₦55.4bn in H1 2025, growing slower than Revenue. This led to an improvement in the cost-to-sales ratio to 71.1% from 71.7% in H1 2025, with Gross Profit rising by 10.4% y/y to ₦24.1bn (H1 2025: ₦21.9bn). Consequently, Cadbury’s gross margin expanded by 0.6 percentage point (ppt) to 28.9%, reflecting improved cost efficiency during the period.
Stock Rating: Buy
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