UAC of Nigeria (UACN) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 rose 38% year-over-year to ₦56.0bn, driven by strong sales in Packaged Food & Beverages (+59%), Edibles & Feed (+33%), and Paints (+19%).

• Gross profit increased 57% to ₦14.3bn, with gross margin expanding to 25.5% due to volume growth, pricing, and cost optimization.

• Operating profit doubled to ₦6.8bn, with underlying operating profit at ₦6.4bn, excluding a ₦446mn gain from a non-core property sale.

• Profit before tax declined 44% to ₦5.0bn, and net profit dropped 44% to ₦3.3bn, reflecting higher finance costs, tax expense, and the absence of prior year FX gains.

• Total comprehensive income attributable to equity holders was ₦3.2bn, down from ₦5.4bn in Q1 2024.

Financial highlights

• Revenue: ₦56.0bn (Q1 2025) vs ₦40.6bn (Q1 2024).

• Gross profit: ₦14.3bn vs ₦9.1bn year-over-year.

• Operating profit: ₦6.8bn vs ₦3.4bn year-over-year.

• Net finance cost: ₦2.1bn (vs net finance income of ₦5.1bn in Q1 2024), reflecting higher borrowing costs and absence of FX gains.

• Basic EPS: 106 kobo vs 185 kobo year-over-year; underlying EPS was 91 kobo, compared to a loss per share of 17 kobo in Q1 2024.

Outlook and guidance

• Management continues to focus on operational efficiency, cost control, talent development, disciplined capital allocation, technology adoption, governance, and sustainability.

• No changes in risk management structure or policies since year-end.

• Ongoing cost optimization and new product development are expected to drive future growth.