Cadbury Nigeria Plc and Nestlé Nigeria Plc, two players in the food production-diversified sub-sector of the Nigerian Exchange, have delivered impressive stock market performances in 2025.
Cadbury has stolen the spotlight with 193% year-to-date gain, while Nestlé has followed closely with an impressive 114% rise as of September 2025.
This rally stands in sharp contrast to their 2024 outcomes, when Cadbury posted a modest 26% gain and Nestlé slipped 20% into the red.
Now, with both stocks trading close to their 52-week highs, Cadbury at 89% and Nestlé at 99%, the big question for investors is whether this momentum can be sustained in the final quarter of the year, and more importantly, which of the two offers the better value going forward.
Overall, Cadbury has better growth, with higher profit margins, better efficiency ratios, and the strongest year-to-date share price performance.
Nestlé, on the other hand, trades at a higher valuation multiple, but it offers scale, consistent profitability, and strong cash generation.
The coming quarters will show how both companies sustain their momentum.
But first, let’s understand how they got here.
Their sector, consumer goods, has been one of the standout performers on the Nigerian Exchange in 2025.
The Consumer Goods Index has surged 96% YtD as of September 2025, outstripping the All-Share Index’s (ASI) 38.33% gain and far more than the 39.5% sector gain recorded over the same period in 2024.
The listed consumer goods companies boasted a combined market capitalization of N19.86 trillion of the total market cap of N90.59 trillion, a sharp rise from N11.2 trillion in 2024.
Turning back to Cadbury and Nestlé, while Cadbury leads in year-to-date share price growth, Nestlé dominates in market value.
Nestlé’s market capitalization stood at N1.48 trillion compared to Cadbury’s N144 billion, giving both a combined N1.63 trillion as of September 30, 2025, up sharply from N743 billion in December 2024.
This sets the stage for a deeper look at how both companies stack up on fundamentals and valuation.
In the first half of 2025, both Cadbury and Nestlé delivered strong earnings, though their growth stories reflect different strengths.
Nestlé led in absolute numbers and scale, while Cadbury outperformed in growth momentum.
Nestlé led in absolute numbers and scale, while Cadbury outperformed in growth momentum.
Both companies staged a comeback from heavy losses recorded a year earlier.
Cadbury swung from a loss of N9.72 billion in H1 2024 to a profit of N10.18 billion in H1 2025, while Nestlé rebounded from a staggering N177 billion loss in H1 2024 to a profit of N50.57 billion in H1 2025.
The rebound in 2025 is particularly encouraging for both shareholders and investors, considering that the heavy losses in 2023 and 2024 had left the companies with accumulated losses of N42.71 billion for Cadbury and a much larger N116 billion for Nestlé over a five-year period.
A cursory review of the financials shows that while both companies recorded revenue growth, which drove stronger operating profit, their turnaround was also buoyed by a reversal in foreign exchange losses to gains.
Nestlé dominates the balance sheet position of the two companies, accounting for about 91% of their combined N946 billion asset base.
On the liabilities side, both companies continue to grapple with accumulated losses.
Cadbury’s balance sheet looks comparatively healthier.
A comparison of efficiency, leverage, and valuation metrics highlights the trade-offs between Cadbury and Nestlé.
The market is still optimistic about both stocks, but in different ways.
Cadbury may look “cheaper” on paper, but Nestlé offers better value in real terms because its earnings and cash flow support the market price.
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