Cadbury Nigeria Reports N10.1 Billion Profit Amid Concerns

Cadbury Nigeria (NGX: CADBURY) reported a nine-month profit of N10.1 billion, exceeding its total profit for 2025. The gross margin is approximately 29%, and borrowings have decreased by a third.

Minority shareholders, who have awaited a turnaround, may find this encouraging. However, the financial statements reveal concerning related-party transactions.

Cadbury Nigeria purchased N24.9 billion worth of 3-in-1 Hot Chocolate from Cadbury Ghana, which constitutes about 28% of total cost of sales. Additionally, cocoa butter sales to Mondelez Egypt and Mondelez South Africa totaled N8.6 billion, representing roughly 94% of the intermediate cocoa segment.

The amounts due from related parties increased to N7.2 billion, with South Africa owing N3.9 billion. Meanwhile, amounts owed to related parties halved to N6.3 billion, primarily settled with Ghana.

Cadbury also repaid N4.5 billion of intercompany loan principal and N2.3 billion of interest, indicating significant cash flow movements in nine months.