UAC of Nigeria Plc reported a 38% year-on-year increase in revenue to ₦56 billion in the first quarter (Q1) ended March 31, 2025.
The growth was supported by strong performance across its core operating segments like Packaged Food and Beverages, Edibles and Feed, and Paints.
Gross profit for the period rose by 57% to ₦14.3 billion with gross margin improving by 303 basis points to 25.5%. The margin expansion was attributed to increased volumes, disciplined pricing strategies, and ongoing cost optimisation initiatives implemented across the Group.
Operating profit surged to ₦6.8 billion in Q1 2025, representing a 101% increase compared to the ₦3.4 billion recorded in the same period last year. Excluding a ₦446 million one-off gain from the disposal of a non-core property asset, underlying operating profit stood at ₦6.4 billion.
Profit before tax (PBT) came in at ₦5 billion, lower than the ₦9 billion reported in Q1 2024. However, after adjusting for exceptional items—such as the ₦5.9 billion FX revaluation gain in the prior year—underlying PBT increased by 48% to ₦4.6 billion, up from ₦3.1 billion in Q1 2024.
Total profit after tax was ₦3.3 billion, compared to ₦5.9 billion in the corresponding period last year.
The company recorded earnings per share (EPS) of 106 kobo in Q1 2025, down from 185 kobo in Q1 2024 while on an adjusted basis, EPS stood at 91 kobo when compared to a 17 kobo loss per share in the previous year.
The Group’s Packaged Food and Beverages segment recorded 59% revenue growth, while Edibles and Feed grew by 33%, and Paints expanded by 19%. These gains were supported by pricing adjustments, increased product availability, and growth in distribution reach.
Operating expenses rose by 35% to ₦8.1 billion due to inflation-driven increases in energy, personnel and marketing costs. Nevertheless, the Group recorded a marginal improvement in the operating expense-to-sales ratio, which dropped 32 basis points to 14.5%.
Net finance costs stood at ₦2.1 billion in Q1 2025, compared to net finance income of ₦5.1 billion in Q1 2024.
The shift was primarily due to higher interest rates and increased short-term borrowing to fund seasonal raw material purchases in the Edibles and Feed segment.
Annualised Return on Invested Capital (ROIC) for the quarter stood at 45.1%, compared to 27.1% in the prior year, indicating improved capital efficiency despite macroeconomic headwinds.
Commenting on the results, Group Managing Director, Fola Aiyesimoju, stated, “In Q1 2025, we worked on our core themes of talent acquisition and development, disciplined capital allocation, embracing technology, enhancing governance and controls, and driving sustainability.
“To deliver value to the consumer, we focused on consistent quality and availability, as well as new product development to increase range. Group revenue increased 38% to ₦56bn and operating profit doubled to ₦6.8bn. Rising interest rates impacted net profit, with underlying profit before tax 48% higher year-on-year. The non-recurrence of ₦5.9bn FX gains recorded in Q1 2024 affected year-on-year comparisons.”
