{
  "id": 17283735,
  "title": "Cadbury Nigeria: Mondelez gets paid, minorities please wait",
  "url": "https://urgent.news/2026/10/30/cadbury-nigeria-mondelez-gets-paid-minorities-please-wait",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-30T20:17:46.000Z",
  "source": {
    "name": "Nairametrics",
    "slug": "nairametrics",
    "url": "https://nairametrics.com/2026/10/30/cadbury-nigeria-mondelez-gets-paid-minorities-please-wait/"
  },
  "original_language": "en",
  "account": "Cadbury Nigeria's financial report for the past nine months paints a picture of recovery, but it also raises concerns for minority shareholders. The company's profits of N10.1 billion have already surpassed its 2025 targets, with an improved gross margin of nearly 29% and reduced borrowings by a third. However, the question remains: who is benefiting from this turnaround?\n\nThe key to understanding this story lies in examining Cadbury's expenses and revenue streams. A significant portion of the company's costs comes from purchasing products from its sister company, Cadbury Ghana, including 3-in-1 Hot Chocolate, which accounted for 28% of total cost of sales. Furthermore, the company sells cocoa butter to Mondelez entities in Egypt and South Africa, which together represent 94% of the intermediate cocoa segment and over 85% of export revenue.\n\nThe company's intercompany relationships are also noteworthy. The amounts owed to Cadbury from related parties have decreased from N12.8 billion to N6.3 billion, with the majority being settled with Ghana. In addition, Cadbury has repaid N4.5 billion of intercompany loan principal and N2.3 billion in interest. However, the disclosure of related-party transactions has been criticized as sloppy, particularly in the reporting of a large intercompany receivable owed to South Africa.\n\nFurthermore, Cadbury pays royalties, technical, and management fees to Mondelez AMEA, which amounted to N2.2 billion, representing around 15% of pre-tax profit. Despite the earnings growth, operating profit has decreased by 10% due to a surge in selling and distribution costs, which now account for 15.8% of revenue. Pre-tax profit has risen due to a reduction in finance costs from N2.1 billion to a profit of N200 million. However, this gain is largely attributed to a favorable exchange rate on the company's loan with the parent company.\n\nOverall, the profit growth in Cadbury Nigeria is not solely the result of domestic operations. A significant portion of the growth can be attributed to the revaluation of what the company owes to its parent company. When the impact of the group is removed, the domestic business appears to have barely moved. Sales in Nigeria grew by only 1.8%, while Bournvita and 3-in-1 revenues fell by 6%. Inventories have increased by 35%, and cash conversion has settled at near 56% of profit. The current ratio remains below one, indicating potential liquidity concerns.\n\nWhile Cadbury Nigeria is making progress in repaying the expensive loan from its parent company, minority shareholders who own 20.6% of the company are left wondering when they will receive their share of the recovery. Shareholders should inquire about the pricing of inputs such as cocoa butter, the payment schedules of related parties, and the allocation of profits between the parent company and shareholders. The company's recovery is evident, but the welfare of its minority shareholders remains a separate concern.",
  "summary": "Cadbury Nigeria’s nine-month numbers read like a recovery story. The related-party notes read more like the accounts of a well-run Mondelez branch office. Cadbury Nigeria’s nine-month profit of N10.1 billion already beats its whole of 2025. Gross margin is back near 29%, and borrowings are down by a third. For minority shareholders who have waited […] The post Cadbury Nigeria: Mondelez gets paid,…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}