Coca-Cola Ties $393m Loss To Chi Limited’s Sale

The Coca-Cola Company has disclosed a loss of $393 million linked to its recent sale of Chi Limited, a key subsidiary operating primarily in Nigeria.

The company disclosed the $393 million impairment charge tied to the sale of Chi Limited in its Q3 2025 financial statements, highlighting the cost of its exit from Nigeria’s juice and dairy market.

The transaction, part of Coca-Cola’s strategic portfolio realignment, resulted in the company recognising this substantial financial setback in its latest quarterly earnings report.

Chi Limited, known for its dairy and juice products, was sold to promote Coca-Cola’s focus on its core beverage segments amid evolving market dynamics in Africa.

In the third quarter of 2025, Coca-Cola announced the sale of Chi Limited, makers of Hollandia and Chivita, to UAC Nigeria Plc. The deal marks the end of Coca-Cola’s six-year direct operation in Nigeria. It also signals a shift in strategy as the company focuses on simplifying its global portfolio.

Coca-Cola first entered Chi Limited in 2016, purchasing a 40 per cent stake from Tropical General Investment (TGI) Group for about $438 million, according to BusinessDay findings. The agreement included a path to full ownership within three years. That goal was achieved in January 2019, when Coca-Cola acquired the remaining 60 per cent for $257 million. In total, the company spent roughly $694.5 million on the acquisition.

Coca-Cola’s management explained that while the immediate financial impact is a setback, the move aligns with its long-term objectives to streamline operations and invest in high-growth areas.

The sale price to UAC Nigeria Plc has not yet been disclosed. However, Coca-Cola recorded a $393 million net loss on the transaction. This suggests that the sales proceeds were considerably lower than the book value of Chi Limited on Coca-Cola’s balance sheet.

The impairment adds to the company’s broader financial restructuring efforts. Coca-Cola is also preparing to take a $1 billion charge linked to the planned sale of part of its stake in Coca-Cola Beverages Africa (CCBA).

Meanwhile, UAC Nigeria Plc is expected to release details of the Chi acquisition in its Q3 2025 report. UACN announced plans to raise N65 billion in a new commercial paper programme. However, it is noted that the capital raise is not channelled to the Chi acquisition, as that transaction is already completed.

Stanbic IBTC Capital is the lead arranger, providing investment banking and advisory services to UAC Nigeria.