UAC of Nigeria (UACN) Q4 2024 earnings summary

Executive summary

• Achieved revenue of ₦197 billion in 2024, with operating profit up 780% to ₦19 billion and profit before tax rising 107% to ₦26 billion, driven by disciplined execution, innovation, and margin protection.

• Performance improvement supported by volume growth, cost management, technology investments, and talent development amid high inflation, naira devaluation, and rising interest rates.

• Maintained a stable dividend proposal of 22 kobo per share, balancing shareholder returns with cash preservation for investments.

• Strategic focus on operational efficiency, margin protection, and new product launches across core segments.

Financial highlights

• Revenue grew 63% year-on-year to ₦197 billion; operating profit reached ₦19 billion, a 780% increase from 2023.

• Gross margin expanded by 583bps to 24%; EBIT margin improved to 9.6%; operating margin rose 780bps to 10%.

• Earnings per share rose to 497 kobo from 314 kobo in 2023; free cash flow improved to ₦2.1 billion.

• Return on invested capital increased to 33% from 20% in the prior year.

• Net financing income of ₦5.9 billion, supported by higher investment yields and treasury gains.

Outlook and guidance

• Focus remains on profitable growth, operational simplicity, and scale, with continued investment in technology, talent, and risk management.

• Restaurant business remains challenging and loss-making; management is cautious with expansion and resource allocation.

• Will continue to evaluate dividend policy based on investment opportunities and cash needs.