UAC of Nigeria Plc has reported a profit before tax (PBT) of N25.5 billion for the fiscal year ending December 31, 2024, representing an impressive 107% growth compared to 2023. This milestone underscores the company’s successful turnaround strategy and sustained growth across key business segments.
Strong Performance Across Core Segments
UAC’s revenue surged 63.4% year-on-year to N197.9 billion, driven by outstanding performances in its food, paints, and real estate divisions. The company nearly doubled its operating profit to N18.9 billion, while after-tax profit soared to N17 billion, reflecting a 90.4% increase from the previous year.
Gross profit also rose 117% to N46.3 billion, supported by better pricing strategies, increased sales volumes, and cost efficiencies. Additionally, UAC reported a 60% increase in cash reserves, reaching N40.6 billion, reinforcing its strong liquidity position.
Key Growth Drivers Across Business Segments
Edible Foods
- Revenue reached N100 billion, up 50% year-on-year.
- Profit before tax climbed to N1.8 billion, from just N324 million in Q4 2023.
- Growth was fuelled by price adjustments and operational efficiencies.
Packaged Food and Beverages
- Revenue soared 102% to N57.7 billion, driven by higher demand for snacks and dairy products.
- Notable performers included Gala, Supreme Ice Cream, and new product launches like Kingsway Loaf and yoghurt pouches.
- Profit before tax doubled to N966 million, reflecting the company’s innovation strategy.
Paints
- Revenue grew 52% to N36.3 billion, supported by strong demand and pricing adjustments.
- Profit before tax rose 36% to N2 billion, driven by improved margins.
Quick Service Restaurants (QSR)
- Revenue fell to N2.5 billion in Q4 2024, down from N3.7 billion in Q4 2023.
- The segment cut losses by closing underperforming outlets and implementing cost-saving measures.
Beyond core business operations, UACN generated N12.6 billion from interest on bank deposits and foreign exchange gains, more than double the previous year’s amount.
Rising Costs & Strategic Efficiency
Despite rising expenses, UAC managed to enhance profitability. Raw material costs surged 55.7% to N133.3 billion, while personnel expenses rose 51% to N17.6 billion. However, effective cost control measures and operational efficiency improvements helped mitigate these cost pressures.
Dividend Remains Unchanged Despite Record Profits
Despite its stellar financial performance, UAC’s Board has proposed maintaining its dividend at 22 kobo per share, the same as in 2023. The dividend will be paid on June 5, 2025, to shareholders registered by May 21, 2025.
While some investors may have expected a higher payout, analysts suggest the company is prioritising reinvestment and future growth over increased dividends.
Outlook for 2025: Consolidation & Expansion
Group Managing Director Fola Aiyesimoju highlighted that UAC’s 2025 focus will be on consolidating gains, talent development, and expanding market share.
With total assets rising 40% to N157.7 billion and equity now at N66.4 billion, UAC is in a stronger financial position than in previous years, signalling long-term sustainability and growth.
