UAC of Nigeria (UACN) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 grew 3.3x year-over-year to ₦365bn, driven by the consolidation of CHI Limited and strong performance in Packaged Food & Beverages and Paints segments.

• Operating profit rose 3.9x to ₦49bn, reflecting increased scale, disciplined pricing, and cost controls.

• Net debt reduced by ₦37bn due to strong cash generation and working capital optimization.

• Strategic priorities included investing in technology, disciplined capital allocation, and talent development.

• Major executive appointments and internal promotions supported integration and transformation.

Financial highlights

• Revenue rose 231% year-over-year to ₦365bn; operating profit increased 289% to ₦49bn; profit before tax up 210% to ₦34bn.

• EPS reached 658 kobo, up from 238 kobo in the prior year.

• Free cash flow was ₦71bn, over eight times higher than H1 2025, aided by inventory reduction.

• Gross profit more than tripled to ₦105bn, with gross margin expanding to 28.6%.

• Net debt reduced to ₦257bn from ₦294bn at Dec 2025; long-term debt to LTM EBITDA improved to 1.6x.

Outlook and guidance

• Optimism for continued growth, with capacity constraints being addressed through committed CapEx.

• Focus remains on margin improvement, cash generation, and talent development.

• Management expects continued growth from CHI integration and ongoing investments in core business segments.

• No formal earnings guidance provided for H2.

• Transitioning CHI’s ERP to SAP S/4HANA and further margin expansion are key near-term priorities.