UAC of Nigeria Plc Reports 27% Revenue Growth in Q2 2025, Profit Before Tax Hits ₦6.1 Billion

UAC of Nigeria Plc (NGX: UACN) has released its unaudited results for the second quarter and half-year ended June 30, 2025, reporting a robust performance across all operating segments despite inflationary pressures.

The Group posted revenue of ₦54.4 billion in Q2 2025, up 27% from ₦42.7 billion in Q2 2024, with strong contributions from Paints (+41%), Packaged Food and Beverages (+32%), Edibles and Feed (+16%), and Quick Service Restaurants (+5%).

Key Highlights (Q2 2025 vs Q2 2024)

• Revenue: ₦54.4bn vs ₦42.7bn (+27%)

• Gross Profit: ₦14bn vs ₦9.6bn (+46%)

• Operating Profit: ₦5.8bn vs ₦3.3bn (+77%)

• Profit Before Tax (PBT): ₦6.1bn vs ₦5.9bn (+2.3%)

• Profit After Tax: ₦4.0bn vs ₦3.6bn (+11.6%)

• Earnings Per Share (EPS): 132 kobo vs 119 kobo (+10.7%)

• Return on Invested Capital (ROIC): 39.6%, up from 28.2%

For the half year, UAC reported revenue of ₦110.4 billion, a 33% increase compared to ₦83.3 billion in H1 2024. Gross profit rose 51% to ₦28.3 billion, while EBIT nearly doubled to ₦12.6 billion.

Segment Performance

• Edibles and Feed: Revenue grew 16% to ₦23.1bn, but higher distribution and energy costs drove a ₦736m pre-tax loss compared to a ₦451m profit in Q2 2024.

• Packaged Food & Beverages: Revenue rose 32% to ₦20.6bn; operating profit more than doubled to ₦3.3bn, delivering ₦3.5bn pre-tax profit.

• Paints: Sales surged 41% to ₦10.0bn; operating profit jumped 192% to ₦1.7bn; pre-tax profit hit ₦2.1bn (+167%).

• Quick Service Restaurants: Revenue improved 5% to ₦667m, though the segment posted a ₦390m loss before tax due to rising operating costs.

Associate Companies

• UPDC Plc (Real Estate): Revenue surged 228% to ₦4.3bn, with a ₦1.2bn pre-tax profit supported by Brompton City property sales and improved hotel/facility management.

• MDS Logistics: Revenue rose 12% to ₦6.2bn; operating profit increased to ₦4.4bn from ₦437m, boosted by property disposals and new contracts.

Management Commentary

Commenting on the results, Group Managing Director, Fola Aiyesimoju, said: “In Q2 2025, macroeconomic indicators improved with stable foreign exchange and moderated inflation. Against this backdrop, UAC delivered strong results with a 27% increase in revenue and a 77% rise in operating profit. Underlying profit before tax increased 146%, reflecting margin expansion, efficiency gains, and stronger associate contributions. We remain focused on disciplined execution of our growth and value creation strategy.”

Outlook

The company anticipates continued pressure on disposable incomes in H2 2025 but remains confident in its ability to sustain growth through cost optimisation, efficient pricing, and brand equity reinforcement. Integration of its associate operations, particularly UPDC and MDS Logistics, is expected to further strengthen performance.