This study aims to examine the inventory management effect on profitability of food and beverages sector. A study of nestle and Cadbury. To achieve the objectives of this study, the research adopted expo facto research design. While data were collected from secondary sources. The data generated was presented and analysed using the multiple regression analysis findings showed that goods in transit as measure of inventory management has positive but insignificant effect on profit after tax, finished goods has positive and less important effect on profit after tax and raw and packaging materials establishes positive but irrelevant effect on profit after tax. In the light of the above, the study recommended that managements of Nigerian foods and beverages limited companies to adopt effective inventory management practices like goods in transit, finished goods, and raw and packaging materials.

Keywords : Inventory management, Profitability, Going concern, Cash flow, Profit after tax, manufacturing company, Finished goods, Materials.