UAC of Nigeria Plc Generates N9.1 Billion in Q1 2024

In a recent release, UAC of Nigeria (UACN) Plc reported that it generated a total gross profit of N9.1 billion in the first quarter (Q1), which concluded on March 31, 2024.

The Company's first-quarter unaudited consolidated financial report revealed a positive revenue gain, finishing at N40.6 billion. This figure shows a 65% increase from the corresponding period over the past year. 

Based on the fiscal year 2023 report, the firm is expected to experience more growth in its performance moving forward.  Compared with its Q1 2023 report, UAC of Nigeria Plc's unaudited financial statement reveals a 177% increase in gross profit and a gross % margin expansion to 22.4%. The major drivers in the latest performance came from its Animal Feeds and Other Edibles, Paints, and Packaged Food and Beverages segments. These three business units saw growth of 30%, 114%, and 125%, respectively.

According to reports from LEADERSHIP, the Animal Feeds and Other Edibles segment did better than expected due to intentional cost-cutting measures that decreased operating and conversion costs. In Q1 2024, the segment saw a notable increase in profit before tax, rising from the previous year’s Q1 loss of N1.3 billion to a profit of N462 million. In the Packaged Food and Beverages segment, results were driven by improved topline performance and expanded margins, leading to a profit before tax of N2.2 billion compared to a loss of N6 million in Q1 2023.

The Paints segment also demonstrated significant growth, achieving a profit before tax of N1.9 billion in the quarter, a 230% increase over its Q1 2023 performance.

The Group Managing Director of UACN, Folasope Aiyesimoju, commented on the Company's Q1 performance, saying, "The results we have delivered in the first quarter of this year are a testament to the successful implementation of our strategy."  The three key pillars of this strategy are: having excellent leaders for the various businesses in the group, running companies that own some of Nigeria’s strongest brands and widest distribution network, and increasing investment in processes and technology.”

“Other strategic initiatives which contributed greatly to the Company’s performance were steps taken to ensure production at the lowest possible cost to deliver value to consumers, efforts to optimise energy consumed per unit of production, and increased effectiveness in the distribution of goods and services. We remain committed to investing in these drivers that position us for sustainable growth,” Aiyesimoju added.

UACN continues to pursue improved performance and profitability throughout its subsidiaries, leveraging its strong financial position and strategic initiatives. The company demonstrates its ability to adjust to shifting market conditions through its strategic direction and resilience. The Company is still dedicated to providing value to its stakeholders and encouraging long-term expansion throughout its business segments.

This week, UAC of Nigeria Plc (UACN) and Chemical and Allied Products Plc (CAP) denied a press report claiming that UAC would buy minority shareholders' shares of CAP and then delist the Company from the Nigerian Exchange Limited (NGX). Some unverified news blogs stated that the Company was pushing into delisting from the local stock market. 

In a separate statement to the NGX, UAC and CAP stated that they would not pursue such a claim.

Rather, they highlighted their commitment to growing their business, providing value to stakeholders, and boosting the Nigerian economy.

ABOUT U.A.C OF NIGERIA PLC (UACN.NG)

UAC of Nigeria Plc is an investment holding company in Nigeria with diverse business interests in the food and beverages, real estate, paint, and logistics sectors. The Company also has business interests in the Ivory Coast. UAC of Nigeria Plc manufactures and sells food items, livestock feed, bottled water, fruit juices, ice creams, and a range of paint and other home deco products. Well-known brands in its product portfolio include Gala sausage rolls, Funtime coconut chips, Supreme ice cream, Swan natural spring water, Gossy spring water, Grand soya oil and cereals, Vital feeds, Binggo dog food, Dulux, and Sandtex paint. UAC of Nigeria also offers logistics and supply chain management services, including warehousing, transport, and redistribution services. The Company also manages a pension funds administration service. UAC of Nigeria invests in pharmaceutical outlets, operates a chain of Mr Bigg restaurants, owns and operates Golden Tulip Hotel in Lagos, and develops, sells, and manages commercial and residential properties in Nigeria. The Company’s head office is in Lagos, Nigeria.

UAC of Nigeria Plc is listed on the Nigerian Stock Exchange