UAC of Nigeria (UACN) Q4 2024 earnings summary

Executive summary

• Revenue grew 63% year-over-year to ₦197 billion, with operating profit up 780% to ₦19 billion and profit before tax rising to ₦26 billion, driven by volume growth, disciplined pricing, and operational efficiency.

• Focused on margin protection, cost management, and product innovation amid high inflation and naira devaluation.

• Continued investment in technology, talent development, and process standardization to drive growth and accountability.

Financial highlights

• Revenue reached ₦197 billion, a 63% increase year-over-year; operating profit rose to ₦19 billion, up 780%.

• Earnings per share increased to 497 kobo from 314 kobo in 2023.

• Free cash flow improved to ₦2.1 billion; return on invested capital rose to 33%.

• Profit before tax surged to ₦26 billion.

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

Outlook and guidance

• Remain focused on profitable growth, operational simplicity, and scale, with continued investment in technology and talent.

• Cautious approach to restaurant business expansion and risk management regarding interest rates and FX.

• Dividend policy prioritizes stability and flexibility for future investment opportunities.