UAC of Nigeria (UACN) Q2 2025 earnings summary

Executive summary

• Announced and completed the acquisition of CHI Limited from The Coca-Cola Company, marking a strategic milestone in value creation and strengthening presence in the fast-moving consumer goods sector.

• Achieved robust revenue and profit growth in H1 2025, driven by strategic pricing, operational improvements, and disciplined cost management.

• Launched new products and expanded retail footprint, supporting topline growth across core segments.

• Operating environment improved with stable exchange rates and moderating inflation, though foreign costs and inflationary pressures remain.

• Net profit and EPS declined due to higher finance costs, despite strong operating performance.

Financial highlights

• Consolidated revenue reached ₦110.4 billion, up 33% year-over-year; operating profit rose 90% to ₦13 billion.

• Gross profit increased to ₦28.3 billion, with gross margin expanding to 26%.

• EPS was 238 kobo; free cash flow generated was ₦8.8 billion; ROIC improved to 40%.

• Operating profit margin rose to 11.4%, up 341 basis points year-over-year.

• Net cash position at period end was ₦3.5 billion, reversing from net debt at year-end.

Outlook and guidance

• Focus for the rest of the year will be on integrating CHI Limited, maintaining profitable growth, and operational efficiency.

• Expectation that moderating inflation and interest rates will support volume-driven growth and reduce borrowing costs.

• Continued disciplined pricing, product innovation, and distribution expansion to sustain growth.