UAC of Nigeria (UACN) Q4 2025 earnings summary

Executive summary

• Completed acquisition of C.H.I. Limited in October 2025, significantly expanding scale, brand portfolio, and leadership in Packaged Food & Beverages and paints segments.

• Revenue grew 74% year-over-year to ₦343.4bn, driven by C.H.I. consolidation and strong organic growth in core segments.

• Underlying profit before tax rose 76% to ₦28.7bn, excluding one-off acquisition-related items.

• Free cash flow performance varied, with some reports showing an increase to ₦14.4bn, while others noted negative ₦2.2bn due to acquisition costs.

• Proposed dividend of ₦1 per share, reflecting confidence in underlying performance and cash flow.

Financial highlights

• Reported profit before tax was ₦7.5bn–₦16.4bn, down 36% due to one-off acquisition costs; underlying profit before tax was ₦27.3bn–₦28.7bn, up 68%–76%.

• Revenue reached ₦340bn–₦343.4bn, a 73%–74% increase year-over-year.

• Underlying operating profit was ₦32.6bn–₦33bn, up 73% year-over-year.

• Reported EPS was 362 kobo; underlying EPS (adjusted for one-offs) was 734 kobo, 1.5x higher than 2024.

• Free cash flow ranged from negative ₦2.2bn to positive ₦14.4bn, reflecting acquisition impact.

Outlook and guidance

• Focus on integrating C.H.I., driving operational efficiency, margin expansion, and accelerating cash generation.

• Cautiously optimistic for 2026, expecting continued improvement with moderating inflation and stable currency.

• Monitoring Middle East tensions for potential headwinds in shipping costs and input prices.

• No forward revenue guidance provided; Q1 2026 will reflect full-year consolidation of C.H.I.

• Leverage expected to moderate over the medium term as deleveraging efforts continue.