Cadbury Nigeria's pre-tax profit crashed to N5.2 billion in the first quarter of this year, down sharply from N8.54 billion in the same period last year. The 39.2% decline signals mounting pressure on the confectionery maker as production and operating costs continue to squeeze margins across the business.
The drop underscores the challenges facing Nigerian manufacturers who are caught between rising input costs and a price-sensitive market. For Cadbury, which depends on imported raw materials and energy, the combination has proved particularly punishing. The company has not disclosed whether it plans to pass more costs to consumers or implement operational restructuring to restore profitability.
This is Cadbury's first quarterly report since the naira weakened significantly against the dollar, making imported ingredients more expensive. Power costs have also remained elevated, hitting manufacturers hard regardless of their efficiency gains. With the company's profit now less than two-thirds of what it was a year ago, investors will be watching closely to see whether the second quarter brings any relief or signals a longer downturn.
