Consumer goods firms listed on the Nigerian Exchange recorded mixed profitability performance in the first quarter of 2026 as rising operating costs continued to pressure margins across the sector.
Financial results released by Cadbury Nigeria, Nestlé Nigeria, and Unilever Nigeria showed that while revenues increased across the board, stronger cost control and lower finance expenses largely determined earnings quality during the period.
The three companies jointly recorded revenue of N425.13 billion in Q1 2026, representing a 12.15 per cent increase from the corresponding period of 2025. Combined gross profit also rose by 12.50 per cent to N169.56 billion, leaving gross margin largely unchanged at 39.88 per cent.
However, higher marketing, distribution, and administrative expenses weakened operating performance. Combined operating profit fell slightly by 0.51 per cent to N91.64 billion, while operating margin declined from 24.30 per cent to 21.55 per cent.
ALSO READ: Court orders EFCC to lift restrictions on Nwabuoku’s assets
Below the operating level, lower finance costs improved earnings. Combined pre-tax profit rose by 31.14 per cent to N92.39 billion, while post-tax profit increased by 19.05 per cent to N49.66 billion. Despite the improvement, the companies retained less than N12 profit for every N100 in revenue generated.
Unilever posted the strongest margin performance among the three firms. Revenue rose by 25.96 per cent to N59.17 billion, while cost of sales increased at a slower pace of 15.77 per cent. Gross margin improved to 44.98 per cent from 40.13 per cent, while operating profit rose by 38.88 per cent to N11.48 billion.
📢 Stay Updated — Join Our WhatsApp Channel
💬 Be Part of Our WhatsApp Community
Join our WhatsApp Channel for curated updates, breaking stories, and exclusive insights from our newsroom.
📲 Join 👉 NRTC WhatsApp Channel
The company also maintained a stronger balance sheet position with positive working capital of N93.36 billion and low debt exposure. Its share price has gained 133 per cent since the start of 2026 after a 124 per cent rally in 2025.
Nestlé remained the largest profit contributor despite continued pressure from operating costs. Revenue increased by 10.59 per cent to N326.13 billion, while profit after tax rose by 29.23 per cent to N39 billion following a reduction in finance costs.
ALSO READ: CBN offers N650bn Treasury Bills auction for May 20
Cadbury recorded the weakest margin performance during the quarter. Revenue increased by seven per cent to N39.83 billion, but faster growth in production and operating expenses reduced operating profit by more than 51 per cent to N4.72 billion.
The company still reported a profit after tax of N3.64 billion, supported by lower borrowing costs and foreign exchange gains. Analysts said investors will closely watch cost management and liquidity levels across the sector in the coming quarters.
🔍 Explore More
- NRTC English Knowledge Base – Learn, improve, and sharpen your English skills.
- Top Stories From Around the World – Stay informed with the latest global news and insights.
- Specially Curated Listicles – Discover interesting lists, guides, and deep dives selected for our readers.
- Stay Updated: Join our mailing list and never miss the latest articles and updates from NRTC.
