UACN Reports N110.4bn Revenue As Consumer Demand Surges

UAC of Nigeria (UACN) Plc has reported a revenue of N110.4 billion, reflecting robust consumer demand and sustained commercial momentum across its key operating segments.

The company’s half-year (H1) results for the period ended June 30, 2025, reaffirmed its long-term growth strategy. The Group reported strong topline growth, with revenue rising by 33 per cent year-on-year to N110.4 billion in H1 2025. Gross profit also increased significantly by 51 per cent, supported by effective pricing strategies and enhanced cost management, leading to over 300 basis points of margin expansion.
These improvements translated into a 91 per cent surge in underlying profit compared to the same period last year, underscoring the company’s operational leverage and disciplined execution, which were supported by an improving macroeconomic environment.

However, profit after tax indicated a 22.9 per cent year-on-year decline, attributed to a one-off N9.4 billion foreign exchange gain recorded in H1 2024. Excluding this non-recurring item, the Group’s underlying profit before tax grew by 91 per cent, offering a clearer view of the company’s earnings quality and business fundamentals.

Speaking on the Group’s performance and outlook, group managing director, UACN, Fola Aiyesimoju stated that, ‘UAC maintained strong business momentum, driven by gross margin expansion, operational efficiency, and improved contributions from associate companies.’

Looking ahead, he said, “We will continue to execute our growth and value creation strategy with discipline and a long-term focus. Segment-level performance reflected strong growth across key business units. The packaged food and beverage segment grew by 43 percent year-on-year, led by strong momentum in snacks and dairy and supported by wider distribution.

“The Animal Feeds segment posted a 24 per cent increase in revenue, while the Paints segment expanded by 29 per cent, boosted by retail network growth, including the addition of 51 new points of presence nationwide.”

He added that, “as part of its broader growth strategy, UAC continues to explore selective mergers and acquisitions that align with its deep market knowledge and operational expertise. The acquisition of CHI Limited, announced recently, fits squarely within this framework and signals a deliberate expansion in Nigeria’s fast-growing food and beverage sector.

“It represents not just an expansion of the Group’s portfolio, but a long-term investment in high-potential categories where UAC anticipates sustained consumer demand, route-to-market synergies, and margin-accretive opportunities.”

Speaking on the significance of the acquisition, Aiyesimoju stated tha, “this marks a pivotal milestone for our Group. We are honoured by the confidence the Coca-Cola Company has placed in us to steward a business as iconic as CHI Limited.

“Working closely with the Coca-Cola Company on this transaction gave us a valuable glimpse into what world-class looks like, a standard we continue to aspire to at UAC. We look forward to building on this strong foundation.