Highlights
- Revenue increased by 9% Year-on-year (YoY) from ₦40.02 billion in Q2 2025 to ₦43.51 billion in Q2 2026.
- Gross profit increased by 36% YoY from ₦9.71 billion to ₦13.23 billion, while gross margin improved from 24% to 30%.
- Operating profit increased by 7% YoY from ₦6.59 billion to ₦7.05 billion.
- Profit after tax also increased by 7% YoY from ₦4.20 billion to ₦4.47 billion in Q2 2026.
Outlook
Improvement in gross margin is encouraging, particularly as cost of sales remained broadly flat. This means that the company is gaining some relief on production costs. The moderation in the company’s major raw material (global cocoa) prices from their previous highs in the last two years should continue to provide support to Cadbury’s production costs and keep margins in control.
However, the main issue to watch is operating expenses. Selling and distribution expenses more than doubled in Q2 and absorbed much of the improvement in gross profit. If these costs remain high, stronger revenue growth will be needed for the improvement in gross margin to translate into meaningful earnings growth going forward.
Borrowings have also declined significantly (From N22.81 billion in FY 2025 to N18.76 billion in Q2 2026). This should help keep finance costs under control and reduce pressure on future earnings going forward.
Please follow the link “Cadbury Nigeria Plc Q2 2026 – Q2 Growth Provides Relief After Weak Q1” to view the whole report.
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