UAC of Nigeria (UACN) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 increased 231% year-over-year to ₦365 billion, driven by the consolidation of CHI Limited and strong growth in Packaged Food & Beverages and Paints segments.

• Operating profit rose 3.9x to ₦49 billion, and profit before tax reached ₦34 billion, reflecting increased scale, disciplined pricing, and cost controls.

• Free cash flow surged to ₦71 billion, supported by higher operating profit and inventory reduction.

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

• Management remains optimistic about long-term growth, focusing on talent, technology, and disciplined capital allocation.

Financial highlights

• Consolidated revenue: ₦365 billion; operating profit: ₦49 billion; profit before tax: ₦34 billion.

• Earnings per share increased to 658 kobo from 238 kobo year-over-year.

• Gross profit more than tripled to ₦105 billion; gross margin expanded to 28.6%.

• Free cash flow for H1 2026 was ₦70.9 billion, reflecting higher profitability and inventory reduction.

• Total assets as of June 2026 stood at ₦557.77 billion, with equity of ₦75.71 billion.

Outlook and guidance

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

• Focus remains on integrating CHI, expanding talent depth, and rolling out SAP S/4HANA at CHI.

• No specific earnings guidance for H2, but optimism remains for long-term growth; capacity constraints are being addressed with committed CapEx.