UAC of Nigeria Plc has posted a pre-tax profit of N25.828 billion ($16.6 million) for the year ended December 31, 2024, marking a 109.3% increase compared to the previous year. The company’s revenue surged by 63.96% year-over-year (YoY) to N197.614 billion ($127.1 million), driven by robust growth across its core business segments.
Revenue Breakdown & Key Growth Drivers
•Edibles & Feed: +54%
•Paints: +52%
•Packaged Foods & Beverages: +102%
Financial Highlights (2024 vs. 2023)
•Revenue: N197.614 billion ($127.1M) (+63.96%)
•Cost of Sales: N151.318 billion ($97.3M) (+52.52%)
•Gross Profit: N46.295 billion ($29.8M) (+117.16%)
•Sales & Marketing Expenses: N11.456 billion ($7.4M) (+30.26%)
•General & Admin Expenses: N18.807 billion ($12.1M) (+64.41%)
•Operating Profit: N18.642 billion ($12M) (+105.02%)
•Finance Cost: N6.884 billion ($4.4M) (+93.49%)
•Profit After Tax: N16.964 billion ($10.9M) (+90.43%)
•Earnings Per Share (EPS): N5.15 (+64.01%)
•Cash & Cash Equivalents: N40.320 billion ($25.9M) (+59.56%)
•Total Assets: N156.821 billion ($100.9M) (+39.59%)
•Total Equity: N66.454 billion ($42.7M) (+24.96%)
CEO’s Statement on Performance
Commenting on the company’s stellar results, Group Managing Director, Fola Aiyesimoju, stated:
“We delivered strong performance in 2024, achieving N198 billion ($127.3M) in revenue and N25 billion ($16.1M) in pre-tax profit, reflecting growth of 64% and 109%, respectively, compared to 2023.
These results are a testament to the hard work, skill, and dedication of our teams. At UAC, people are at the heart of our strategy, and I thank my colleagues for the effort behind these numbers.
Meaningful improvements in growth and profitability were recorded across our core operating segments. Our focus on expanding market reach, optimizing pricing and margins, and mitigating risks related to interest rates and forex volatility played a critical role in these results.”
Investor Insights & Financial Takeaways
UACN delivered strong profitability metrics, with net profit climbing 90.43% and EPS jumping 64.01%, signaling higher value creation for shareholders.
Margin Improvements:
•Gross Profit Margin:23.43% (vs. 18% in 2023)
•Operating Profit Margin:9.43% (vs. 7.54%)
•Pre-Tax Profit Margin:13% (vs. 10.24%)
•Net Profit Margin:8.54% (vs. 7.39%)
The company’s liquidity position strengthened significantly, with operating cash flow turning positive at N6.478 billion ($4.2M) from a negative N3.033 billion ($1.95M) in 2023. This boosts financial flexibility, supporting future investments and expansion plans.
UACN’s current ratio improved to 1.45 from 1.21, reinforcing its short-term financial stability.
Balance Sheet Strength & Leverage Concerns
While UACN’s total assets surged by 39.59% and shareholder equity grew by 24.96%, its debt-to-equity ratio climbed to 63% from 52% in 2023.
•Higher leverage has helped boost Return on Equity (ROE) to 27% from 17%, but the company must manage its borrowing costs carefully to avoid long-term profitability pressures.
•Return on Assets (ROA) stands at 10.82%, meaning UACN’s cost of debt is still a critical factor.
Stock Market Performance & Outlook
UACN’s stock price surged 145% in 2024, reflecting strong investor confidence. In 2025, the momentum has continued, with a Year-to-Date (YtD) gain of 14.6% as of February 6.
Looking ahead, UACN aims to:
•Attract, develop, and retain high-quality talent to drive value creation.
•Prioritize profitable growth, scalability, and operational efficiency to sustain shareholder value.
However, rising leverage and borrowing costs remain key risks. Managing debt effectively will be crucial to maintaining profitability and sustaining growth.
