UAC of Nigeria PLC Reports Strong Q3 2023 Results with Focus on Strategic Reforms

UAC of Nigeria PLC has released its financial results for the third quarter and nine months ending on September 30, 2023.

The report highlights substantial revenue growth and a focus on strategic reforms in a challenging economic environment.

Key Q3 2023 Highlights:

• Revenue Growth: UAC reported revenue of ₦28.7 billion, representing an 11% increase compared to the same period in 2022. This growth was driven by sales increases across all operating segments.
• Gross Profit Surge: The gross profit marked a significant increase of 63%, totaling ₦5.5 billion. The gross margin also expanded by 613 basis points to reach 19.3%. This growth was attributed to price adjustments implemented to combat inflation, volume expansion in the Packaged Food and Beverages and Paints segments, and efficiency improvements in the Animal Feeds segment.
• Operating Profit: The group achieved an operating profit of ₦7.1 billion, primarily attributed to a gain of ₦7.8 billion from the disposal of non-core property assets. Adjusting for exceptional items, the underlying operating profit was ₦657 million, marking a significant improvement compared to an operating loss of ₦852 million in Q3 2022.
• Profit Before Tax: UAC reported a profit before tax of ₦6.4 billion. When adjusting for exceptional items, the underlying profit before tax amounted to ₦415 million, a substantial turnaround from the loss before tax of ₦1.1 billion recorded in Q3 2022.
• Earnings Per Share: Earnings per share stood at 193 kobo, displaying a remarkable improvement from -29 kobo in Q3 2022.
• Corporate Action: The company successfully completed the merger of UAC Foods Limited and Spring Waters Nigeria Limited (SWAN) in August 2023. This aligns with the company’s strategic goal of streamlining UAC’s group structure, resulting in UAC holding a 99.42% share in the expanded UAC Foods.

Fola Aiyesimoju, the Group Managing Director, commented on the results, noting that the company’s financial performance in Q3 2023 was positively influenced by one-time gains from real estate divestments.

However, he acknowledged the challenging operating conditions due to inflation and consumer income pressure. The group remains focused on ongoing reforms and anticipates an improved outlook.

UAC of Nigeria PLC’s financial results reflect a commitment to strategic growth and adaptation in a dynamic economic landscape.