Three major consumer goods companies listed on the Nigerian Exchange Mainboard — Cadbury Nigeria Plc, Nestlé Nigeria Plc and Unilever Nigeria Plc — have released their first-quarter 2026 financial results, revealing how rising operating costs continue to shape profitability and margins across the sector.
The earnings reports come amid strong stock market rallies for all three companies since 2025, with investors closely monitoring whether recent share price gains are being supported by stronger fundamentals or market optimism.
As of May 22, 2026, Unilever Nigeria recorded the strongest year-to-date gain, rising by 133 per cent from ₦72 to ₦168 after posting a 124 per cent return in 2025.
Nestlé Nigeria gained 59.6 per cent year-to-date, climbing from ₦1,958 to ₦3,125 after delivering a 119 per cent return in 2025.
Cadbury Nigeria also advanced 15.2 per cent this year, moving from ₦59.90 to ₦69 following a 179 per cent return in 2025.
Despite the rallies, market indicators suggest the stocks may not yet be overstretched.
Nestlé’s 14-day Relative Strength Index stood at 32.43, Cadbury’s at 51.18, while Unilever’s RSI was higher at 66.02.
Combined financial data from the three companies showed that revenue increased by 12.15 per cent year-on-year to ₦425.13 billion in Q1 2026.
Gross profit also rose by 12.50 per cent to ₦169.56 billion, helping maintain a combined gross margin of 39.88 per cent compared to 39.76 per cent recorded in the same period last year.
However, operating-level pressures became more visible as rising selling, distribution, marketing and administrative costs squeezed margins.
Combined operating profit slipped marginally by 0.51 per cent to ₦91.64 billion, while operating margin declined to 21.55 per cent from 24.30 per cent.
Below the operating line, lower finance costs helped improve profitability.
Combined pre-tax profit increased by 31.14 per cent to ₦92.39 billion, while post-tax profit rose by 19.05 per cent to ₦49.66 billion.
Still, the companies retained less than ₦12 as profit from every ₦100 generated in revenue.
Cadbury Nigeria recorded the weakest margin performance among the three firms despite strong long-term revenue growth.
The company’s revenue expanded from ₦42.37 billion in 2021 to ₦168.66 billion in 2025.
However, Q1 2026 results showed mounting pressure from rising costs.
Revenue rose by 7 per cent to ₦39.83 billion, but cost of sales increased faster by 15.43 per cent to ₦28.94 billion.
Gross profit declined by 10.39 per cent to ₦10.89 billion, while gross margin dropped sharply to 27.34 per cent from 32.65 per cent.
Operating expenses also surged to ₦5.88 billion from ₦2.86 billion, causing operating profit to fall by 51.27 per cent to ₦4.72 billion.
Cadbury’s operating margin declined to 11.85 per cent from 26.02 per cent recorded in Q1 2025.
Although the company benefited from lower finance costs and unrealised foreign exchange gains, profit after tax still fell by 39 per cent to ₦3.64 billion.
Its net profit margin also dropped to 9 per cent.
Despite the weaker performance, analysts noted that Cadbury’s Q1 profit already accounts for more than 40 per cent of its total full-year profit recorded in 2025.
Nestlé Nigeria remained the largest and most profitable company among the three firms.
Its revenue grew from ₦351.82 billion in 2021 to ₦1.21 trillion in 2025.
The company’s Q1 2026 revenue rose by 10.59 per cent to ₦326.13 billion, while gross profit increased by 10.30 per cent to ₦132.06 billion.
However, rising operating expenses weighed on margins.
Operating margin declined to 23.13 per cent from 25.14 per cent despite stronger sales.
Nestlé’s profit after tax rose by 29.23 per cent to ₦39 billion, mainly supported by a sharp reduction in finance costs.
Analysts said key concerns for investors remain leverage levels, weak working capital and the company’s ability to sustain its recovery while restoring consistent dividend payments.
Unilever Nigeria delivered the strongest margin performance among the three companies.
Revenue increased by 25.96 per cent to ₦59.17 billion, while cost of sales rose at a slower pace of 15.77 per cent.
This lifted gross profit by 41.17 per cent to ₦26.61 billion and improved gross margin to 44.98 per cent from 40.13 per cent.
Operating profit also rose by 38.88 per cent to ₦11.48 billion, while operating margin improved to 19.41 per cent.
Analysts said the results showed that Unilever’s profit growth was largely driven by stronger operations and better cost management.
The company also maintained the healthiest balance sheet among the three firms, supported by strong working capital, low debt levels and improving shareholder returns.
Unilever’s dividend per share rose from 50 kobo in 2021 to ₦3.75 in 2025, giving it a stronger dividend history compared to Cadbury and Nestlé, which have not paid dividends since 2022.
Overall, analysts believe Unilever’s strong earnings quality, improving margins and low leverage continue to support investor confidence.
Nestlé remains the largest profit generator in the sector, while Cadbury continues to face margin and liquidity pressures despite its revenue growth momentum.
