Cadbury Nigeria Hits 52-Week High as Earnings Fuel Rally
Cadbury Nigeria Plc has hit another 52-week high in the equities market as investors continue to take positions in the consumer goods company stocks.
According to trading data from the Nigerian Exchange, the share price of Cadbury Nigeria Plc climbed to N38.3 on Friday as 167,378 units valued at N6.472 million were traded in the local bourse.
The consumer goods stock experienced an all-week rally that pushed it to its highest market valuation on the Nigerian Exchange in the last 52 weeks. Hence, Cadbury Nigeria Plc’s 2.280 billion outstanding shares were priced at N87.334 billion at the end of the closing session on Friday in the Nigerian market.
In its Q1 2025 earnings release, Cadbury Nigeria Plc revenue grew by 57.1% year-on-year to N37.23 billion from N23.70 billion in Q1 2024. This strong top line performance was driven by higher domestic sales, particularly in its refreshment beverages segment—featuring products like Bournvita and 3-in-1 Hot Chocolate—as well as growth in confectionery sales.
The company’s Cost of Sales rose by 34.1% to N25.07 billion, compared to N18.70 billion in Q1 2024. However, this increase lagged revenue growth, resulting in a significant improvement in Cadbury’s cost efficiency.
Hence, the company’s cost-to-sales ratio dropped to 67.4%, down from 78.9% in the prior year, and gross profit surged by 143.5% to N12.15 billion, compared to N4.99 billion in Q1 2024. As a result, Cadbury Nigeria’s gross profit margin improved by 11.6 percentage points to 32.6%.
The consumer goods company reported that its total operating expenses notched up by 28.7% in Q1 2025 to settle at N2.86 billion, compared to N2.22 billion in Q1 2024, mainly driven by a 52.4% increase in selling and distribution expenses, which hit N2.26 billion from N1.48 billion in the previous year.
Nonetheless, Cadbury’s operating expenses ratio dropped by 1.7 percentage points to 7.7% in Q1 2025, down from 9.4% in Q1 2024. Its financial scorecard showed that the consumer goods company recorded a profit before tax of N8.54 billion in Q1 2025, compared to a loss before tax of N10.46 billion in Q1 2024.
After accounting for an income tax expense of N2.56 billion, Cadbury Nigeria’s profit after tax settled at N5.98 billion, representing a 181.7% year-on-year jump from a loss after tax position of N7.32 billion in the previous year. #Cadbury Nigeria Hits 52-Week High as Earnings Fuel Extended Rally Equities Investors Gain N1.04trn as Nigerian Stocks Boom
