UAC of Nigeria Plc reported a shocking 257.6 percent increase in profit for the six months ended 30 June 2021.
In the company’s unaudited financial statements, revenue surged by 27 percent from N46.63 billion recorded in the first half (H1) of 2020 to N46.45 billion in the first half of 2021.
Gross profit also increased by 19 percent to N8.3 billion, up from N6.9 billion filed in the same period of 2020. See the details below.
UAC of Nigeria Plc Financial Highlights
• Revenue 27% ahead of H1 2020 at ₦46.5 billion, driven by sales growth across all business segments.
• Gross profit 19% higher than H1 2020 at ₦8.3 billion; Gross margin 119 bps lower due to rising raw material costs
and supply chain disruptions, particularly in the Paints segment, limiting ability to meet demand.
• Operating profit 105% higher at ₦1.7 billion, supported by revenue growth.
• Profit after tax from continuing operations was ₦765 million, up 258% from ₦214 million in H1 2020.
• Earnings per share from continuing operations was 5 kobo, an improvement from 7 kobo loss per share in H1 2020.
• In H1 2020, UAC recorded ₦944 million profit from discontinued operations which impacts year on year comparison.
• Subsidiary company highlights
– Completed merger of Chemical and Allied Products PLC and Portland Paints and Products Nigeria PLC.
• Proposed corporate actions
– Received preliminary regulatory approval to unbundle 649 million UPDC REIT units, valued at ₦ 3.7 billion as at
30 June 2021, to UAC shareholders.
Commenting on the results, Group Managing Director, Fola Aiyesimoju, stated: “We are gaining traction in our focus on growth. Higher sales across all our operating platforms translated to 27% revenue growth year on year. Price increases and operational efficiency offset input cost escalation resulting in 105% increase in operating profit. Profit before tax is 25% higher year on year. Net income was negatively impacted by losses from UPDC PLC and MDS Logistics Limited and we are working with our partners to restore these companies to profitability.”
