Cadbury Nigeria Plc closed the first half of 2026 with an eight per cent rise in revenue that failed to shield the beverage maker from a 20 per cent slide in profit, as higher freight costs and slow consumer spending outweighed a sharp reduction on its earnings.

The unaudited financial statements approved yesterday by the company’s Board of Directors showed that revenue rose by eight per cent to N83.35 billion in the six months ended June 30, 2026, from N77.25 billion in the corresponding period of 2025.

Gross profit increased by 10 per cent to N24.12 billion from N21.86 billion a year earlier, reflecting improved cost management despite persistent inflationary pressures. Gross margin also edged higher to 28.9 per cent from 28.3 per cent in the same period of last year.

However, the stronger top-line performance did not translate into improved earnings. Profit after tax declined by 20 per cent to N8.10 billion from N10.17 billion recorded in the first half of 2025, reducing the company’s net profit margin to 9.7 per cent from 13.2 per cent.

The earnings decline came despite a sharp reduction in finance costs. Net finance cost fell by 89 per cent to N187 million from N1.74 billion in the corresponding period of HI 2025, largely due to favourable foreign exchange movements, providing the company with savings of about N1.55 billion.

The company’s financial statement, however, did not provide a detailed breakdown of operating expenses.

Commenting on the results, Managing Director, Ayman Fahmy Gaafar, said the company continued to contend with a challenging operating environment marked by rising freight costs and weak consumer demand.

“Despite these challenges, Cadbury Nigeria remains committed to delivering value to its stakeholders and will continue to drive business fundamentals, while increasing its Go-to-Market (GTM) capabilities,” he said.

The half-year results remain unaudited. Greater clarity on the factors behind the decline in profitability, particularly the movement in operating expenses, is expected when the company files its detailed half-year financial statements with the Nigerian Exchange.