UAC of Nigeria (UACN) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended 30 September 2024 was ₦133.2 billion, up 63% year-over-year, with Q3 2024 revenue rising 74% to ₦49.9 billion, reflecting strong growth across Edibles & Feed, Packaged Food & Beverages, and Paints segments.

• Net profit for the period rose to ₦13.7 billion from ₦6.7 billion in the prior year, with basic EPS increasing to 426 kobo from 246 kobo; Q3 2024 EPS was 121 kobo compared to a loss per share of 13 kobo in Q3 2023.

• Profit before tax for the nine months ended September 2024 was ₦20.8 billion, 117% higher than the same period last year.

• Total comprehensive income attributable to equity holders reached ₦13.6 billion, more than doubling year-over-year.

• Gross profit for Q3 2024 increased 118% to ₦12 billion, with gross margin expanding to 24% due to volume growth, production efficiency, and price adjustments.

Financial highlights

• Gross profit for the nine months was ₦30.7 billion, up from ₦14.1 billion year-over-year.

• Operating profit increased to ₦12.3 billion from ₦7.1 billion in the prior year; Q3 2024 operating profit reached ₦5.6 billion, up 760% year-over-year when adjusted for prior year exceptional items.

• Net finance income swung to ₦7.8 billion from a cost of ₦837.8 million year-over-year; Q3 2024 net finance income was ₦31 million.

• Total assets grew to ₦138.7 billion as of 30 September 2024, compared to ₦112.3 billion at year-end 2023.

• Free cash flow improved to ₦9.8 billion as of September 2024 from ₦3.9 billion at December 2023.

Outlook and guidance

• Management continues to focus on operational efficiency, risk management, and capital allocation to drive sustainable growth, with emphasis on domestic production and talent retention.

• No changes in risk management structure or policies since year-end; internal controls deemed effective as of 30 September 2024.