UAC of Nigeria (UACN) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was NGN 83.3 billion, up 57.5% year-over-year, with profit before tax at NGN 15 billion, driven by strong volume growth, disciplined pricing, and efficiency initiatives.

• Net profit rose to NGN 9.54 billion, and EPS increased to 304 kobo from 53 kobo year-over-year.

• Growth and profitability attributed to leadership, strategic clarity, technology investments, and talent development.

• Focus on balancing volume growth with proactive pricing, efficiency, and cost optimization to deliver value.

• Maintained strong market positions, launched new products (Kingsway Sausage Roll, Gala Chin Chin), and expanded offerings to address reduced consumer spending power.

Financial highlights

• Revenue grew 57% year-on-year to NGN 83.3 billion in H1 2024 from NGN 53 billion in H1 2023.

• Gross profit for H1 2024 was NGN 18.7 billion, up 117% year-over-year; gross margin expanded to 22.5%.

• Operating profit reached NGN 6.7 billion, reversing an operating loss of NGN 35 million in H1 2023.

• Profit after tax surged to NGN 9.54 billion; EPS rose to 304 kobo.

• Free cash flow improved to NGN 6.3 billion; return on invested capital was 28%.

Outlook and guidance

• Management remains focused on profitable growth, operational efficiency, and talent investment.

• No specific earnings guidance provided; Q4 is historically the strongest quarter.

• Continued investment in technology, process optimization, and shareholder value creation.

• Internal controls assessed as effective as of June 30, 2024.