Unilever Nigeria has emerged as the strongest performer among major consumer goods companies on the Nigerian Exchange in Q1 2026, while Nestlé Nigeria and Cadbury Nigeria continue to struggle with rising production and operating costs that are squeezing profit margins.
Despite solid revenue growth across the three companies, higher expenses on production, marketing, distribution, and administration have weighed on overall profitability. However, all three stocks have recorded strong gains since 2025, reflecting continued investor interest in the sector.
As of May 22, 2026, Cadbury shares were up 15.2 per cent year-to-date, Unilever surged 133 per cent, while Nestlé gained 59.6 per cent. Analysts say valuations remain supported, with no clear signs of overbought conditions based on key market indicators.
Combined revenue for the trio rose 12.15 per cent to ₦425.13 billion, while gross profit increased 12.5 per cent to ₦169.56 billion. However, rising operating expenses led to a slight 0.51 per cent decline in operating profit to ₦91.64 billion, reducing margins from 24.3 per cent to 21.55 per cent.
At the profit level, performance improved, with pre-tax profit rising 31.14 per cent to ₦92.39 billion and post-tax profit increasing 19.05 per cent to ₦49.66 billion. Still, firms retained less than ₦12 in profit for every ₦100 earned in revenue.
Cadbury recorded the weakest performance, with Q1 revenue rising 7 per cent but cost of sales jumping 15.43 per cent. This led to a 39 per cent drop in net profit to ₦3.64 billion and a reduced net margin of nine per cent.
Nestlé remained the most profitable firm, posting 10.59 per cent revenue growth to ₦326.13 billion and a 29.23 per cent rise in after-tax profit to ₦89 billion, supported by lower finance costs.
Unilever stood out with the strongest momentum. Revenue rose 25.96 per cent to ₦59.17 billion, while gross profit jumped 41.17 per cent, driven by improved cost efficiency. Operating profit also climbed 38.88 per cent.
Unilever’s balance sheet remains the strongest, with low debt levels and strong liquidity, while Cadbury continues to face cost and liquidity pressures. Nestlé retains its position as the largest player but is closely watched for leverage concerns.
Overall, analysts say the sector remains resilient, but sustained profitability will depend on how effectively companies manage rising costs in the coming quarters.
