UAC of Nigeria (UACN) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 surged to ₦191.2bn, up 241% from ₦56.0bn in Q1 2025, driven by the C.H.I. Limited acquisition and strong growth in Packaged Food & Beverages and Paints.

• Profit before tax rose sharply to ₦22.6bn from ₦5.0bn year-over-year, aided by a ₦6.8bn one-off FX gain, with net profit at ₦13.6bn versus ₦3.3bn in Q1 2025.

• EPS grew 4.2x to 449 kobo, and annualized ROE jumped to 64.7%.

• The acquisition of C.H.I. Limited was completed in October 2025, significantly expanding the Packaged Food & Beverages segment.

• Gross profit rose 285% to ₦54.8bn, with gross margin expanding to 28.7% due to improved earnings mix and cost optimization.

Financial highlights

• Operating profit reached ₦28.4bn, up from ₦6.8bn in Q1 2025, with operating margin up to 14.9%.

• Net finance cost rose to ₦6.5bn from ₦2.1bn, reflecting higher borrowings post-acquisition.

• Cash and cash equivalents at period end stood at ₦77.6bn, up from ₦50.9bn at year-end 2025.

• Free cash flow was ₦20.2bn.

• Basic and diluted EPS were 449 kobo, up from 106 kobo year-over-year.

Outlook and guidance

• Management expects continued growth from the expanded product portfolio and integration of C.H.I. Limited, focusing on margin expansion and working capital optimization.

• Focus remains on operational efficiency, cost control, and leveraging synergies from recent acquisitions.

• Early progress is encouraging, but further work is anticipated to sustain improvements.