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 major strategic milestone 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, disciplined cost management, and new product launches.

• Revenue for the six months ended June 2025 was ₦110.4 billion, up 33% year-over-year, with all operating segments contributing to growth.

• Operating environment improved with stable exchange rates and moderating inflation, though raw material price volatility and input costs posed challenges.

• Profit before tax for the period was ₦11.1 billion, a decrease from ₦15.0 billion in the prior year, while net profit attributable to equity holders was ₦7.0 billion, down from ₦8.9 billion year-over-year.

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%.

• Operating profit margin rose to 11.4% from 8%, driven by packaged food, beverage, and paint segments.

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

• Net finance cost was ₦3.6 billion, impacted by higher borrowing costs and absence of prior year's FX revaluation gain.

Outlook and guidance

• Focus remains on integrating CHI Limited post-regulatory approval, with emphasis on value creation, leveraging synergies, and operational efficiency.

• Expectation that moderating inflation and interest rates will support further growth and margin improvement.

• Anticipate volume growth to play a larger role as consumer recovery continues.

• Continued investment in talent, technology, and operational improvements to drive shareholder returns.