Cadbury’s export cocoa sales slump more than 50% in 9 months

Cadbury’s export cocoa sales slump more than 50% in 9 months

Cadbury Nigeria Plc experienced a major drop in its cocoa export earnings between January and September 2025, with revenue falling by 52.7% to N5.05 billion, down from N10.66 billion a year earlier. This sharp decline—over N5.6 billion—highlights the challenges faced by Nigerian manufacturers as currency volatility, rising production costs, and global demand weakness continue to constrain export performance.

The company’s export business had previously boomed after the 2023 naira devaluation, which temporarily made Nigerian goods more attractive abroad. Between 2022 and 2023, export revenue more than doubled, reaching its all-time high last year. However, that momentum collapsed in 2025 despite further naira depreciation. Industry stakeholders say the expected export advantage was eroded by expensive inputs, supply-chain disruptions, and limited access to working capital.

While exports struggled, the domestic market provided some relief. Revenue from local sales of cocoa-based products rose 44.8% to N114.19 billion, showing stronger demand at home. Still, Nigerian cocoa processors faced difficulties due to lower cocoa bean output, caused by poor weather and a black pod disease outbreak.

Nigeria remains the world’s fourth-largest cocoa producer with 315,000 MT, but production is forecast to fall by 10%, even though the ICCO predicts an increase to 350,000 MT in the 2024/2025 season. Meanwhile, global cocoa prices hit a 20-month low, further weakening export earnings for Cadbury.

Overall, Cadbury’s total revenue rose to N119.24 billion from N89.52 billion, largely driven by its refreshment beverages division, which contributed 65.4% of revenue. The biscuit unit, launched two years ago, generated no revenue during the review period.

Despite the export slump, Cadbury posted its first profit in two years, recording N9.68 billion compared to a loss of N11.86 billion last year. Profitability ratios such as net margin and returns on assets and equity improved sharply. However, the company still reported a N495 million net loss in Q3, attributed to high operating expenses driven by Nigeria’s tough economic environment.

Cadbury’s gross profit rose significantly by 88% to N27.75 billion, and operating profit jumped by 154% to N15.9 billion. Additionally, a more stable naira reduced financial strain, as net finance costs dropped drastically to N2.07 billion from N23.18 billion last year.

Still, cost of sales increased by 22.9% due to rising input and logistics costs. On the balance sheet, total assets climbed to N83.48 billion, supported by higher inventories and increased investment in property and equipment. Shareholders’ equity improved to N14.06 billion, signaling strengthened financial health. However, cash reserves declined to N11.13 billion because of loan repayments and higher working capital needs.

Analysts at Meristem Research expect Cadbury’s revenue growth to continue, driven by stable domestic demand and a gradually improving macroeconomic environment. They believe that better foreign exchange stability could reduce cost pressures and further boost profitability going forward.Business

     Business Day, 9  Dec 2025