UAC of Nigeria (UACN) Q4 2025 earnings summary

Executive summary

• Completed acquisition of C.H.I. Limited in October 2025, consolidating its results and significantly expanding scale, brand portfolio, and market leadership in packaged food, beverages, and snacks.

• FY 2025 revenue surged 74% year-over-year to ₦343.4bn, driven by C.H.I. Limited acquisition and strong performance in packaged food, beverages, and paints.

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

• Free cash flow improved sevenfold to ₦14.4bn, reflecting enhanced cash generation post-acquisition, though one summary notes negative free cash flow.

• Board proposed a dividend of ₦1 per share, reflecting confidence in underlying profitability and cash flow.

Financial highlights

• Reported profit before tax was as low as ₦7.5bn, down 36% due to one-off acquisition costs; underlying profit before tax was up to ₦28.7bn, up to 76% higher year-over-year.

• Revenue increased to ₦343.4bn from ₦197bn in 2024.

• Underlying operating profit reached ₦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.

• Net debt rose to ₦294bn due to C.H.I. acquisition; long-term debt/EBITDA at 3.2x.

Outlook and guidance

• Focus on integrating C.H.I. Limited, margin expansion, operational efficiency, and converting profitability to cash.

• Expect full-year consolidation of C.H.I. in 2026 to further boost scale and profitability.

• Cautiously optimistic for 2026 amid moderating inflation, stable currency, and GDP growth, but monitoring Middle East-related supply chain risks.

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