Cadbury Nigeria Plc has been successful in turning shareholders’ investments into profit, as the consumer goods giant tamed foreign exchange exposure by restructuring foreign exchange liabilities.
This impressive performance with a spice of strong free cash flow has bolstered investors’ optimism about dividend payment.
For the year ended December 2025, Cadbury posted profit after tax (PAT) of N12.08 billion from a loss of N22.22 billion.
Return on average equity (ROAE) increased to 116 percent in the period under review from (1014) percent the previous year.
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Put another way, it reveals the company’s success at turning shareholder investments into profits.
It is important to note that Cadbury’s high ROAE has been boosted by debts which puts the company at risk when it is unable to generate income needed to service interest on money borrowed.
The company has a debt to equity ratio of 138.50 percent in December 2025 from 740.71 percent as at December 2024, which means that it is highly geared as debt is 1.38 times equity.
 The ratio measures the level of debt the company takes on to finance its operations, against the level of capital, or equity, that’s available.
Most consumer goods firms embarked on strategic plans that helped them overcome the foreign exchange revaluation headwinds caused by the sudden depreciation of the Naira as the central bank had devalued the currency so as to stabilize the economy woo foreign investor who had dumped Naira assets on the fret that they would lose significant money while repatriating their funds out of the country.
In 2024, Cadbury Nigeria Plc (Cadbury) converted $7.7 million of intercompany dollar loans into equity.
Further analysis of the company’s financial statement shows Earnings before interest, taxation, depreciation, and amortization (EBITDA) spiked by 201.60 percent to N23.82 billion as at December 2025, which validates strong operating efficiency and profitability.
Sales were up 31.50 percent to N169.83 billion in December 2025 from N129.16 billion as at December 2024.
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