UAC of Nigeria Plc has posted its best financial performance in years, recording a profit before tax of N25.5 billion for the year ended December 31, 2024.
This represents a remarkable 107% increase compared to the previous year, marking a major milestone in the company’s turnaround journey.
The strong result is a culmination of years of painstaking restructuring efforts after private equity firm Themis Capital took over in 2018.
Back then, the once-thriving conglomerate was grappling with years of losses, declining revenues, and operational inefficiencies. Fast forward six years, and UAC appears to be back on its feet, with multiple business units firing on all cylinders and the group returning to solid profitability.
Restructuring is finally bearing fruit
Since the change in leadership, UAC has been reshaped from a sprawling holding company into a leaner, performance-focused enterprise.
- The company sold off underperforming assets, refocused on its core consumer goods businesses, and instilled a culture of accountability and operational efficiency.
- Group Managing Director Fola Aiyesimoju credited the turnaround to “the hard work, skill, and dedication” of UAC’s leadership and staff.
In his words, “Meaningful improvements in growth and profitability were recorded across our core operating segments. We aggressively pursued new markets, introduced new products, and focused on cost control, pricing, and risk management.”
Impressive growth across all key areas
UAC’s revenue jumped by 63.4% year-on-year to N197.9 billion, driven by strong performance across all its major business segments — including food, paints, and real estate.
- This helped the company nearly double its operating profit to N18.9 billion, while after-tax profit surged to N17 billion, up 90.4% from 2023.
- Gross profit rose 117% to N46.3 billion, a reflection of better pricing, higher sales volumes, and improved cost efficiencies. UAC also held N40.6 billion in cash at the end of 2024 — up 60% from the previous year — showing stronger liquidity and balance sheet health.
- The company’s earnings per share rose 64% to N4.97, further solidifying value for shareholders.
Segment breakdown: What’s driving the numbers?
UAC’s core business segments delivered a strong performance overall, though with varying results.
- The Edible Foods segment, which includes Grand Cereals and Livestock Feeds, recorded N100 billion in revenue for the year — a 50% increase from 2023. This growth was largely driven by price increases and operational efficiencies. As a result, profit before tax rose significantly to N1.8 billion compared to just N324 million in the fourth quarter of the previous year.
- In Packaged Food and Beverages, UAC saw a 102% surge in revenue to N57.7 billion. The strong showing was fueled by rising demand for snacks and dairy products, particularly popular brands like Gala and Supreme Ice Cream. New product launches such as Chin-Chin, Kingsway Loaf, and yoghurt pouches also contributed to the impressive numbers. Profit before tax doubled to N966 million, reflecting the company’s focus on innovation and brand development.
- The Paints segment, which includes CAP Plc and the Dulux brand, posted N36.3 billion in revenue, up 52% from the previous year. Improved pricing strategies and stronger margins helped push profit before tax up by 36% to N2 billion.
- On the flip side, the Quick Service Restaurants (QSR) segment, which houses the Mr. Bigg’s brand, continued to face headwinds. Revenue declined to N2.5 billion in Q4 2024, down from N3.7 billion in the same period in 2023. However, the segment managed to reduce its losses significantly following the closure of underperforming outlets and the implementation of cost-saving measures.
Beyond product sales, UACN generated additional income from interest on short-term bank deposits and foreign exchange gains, totaling N12.6 billion, more than double the amount earned in 2023.
On the cost side, expenses remained high, with raw material costs surging by 55.72% to N133.253 billion, while personnel expenses jumped 51% to N17.596 billion.
Despite these rising costs, UACN improved profitability, as seen in its expanding profit margins
Dividend stays the same
Despite the significant profit jump, UAC’s Board of Directors has proposed maintaining its dividend at 22 kobo per share, the same as in 2023.
The dividend will be paid on June 5, 2025, to shareholders registered by May 21, 2025.
While some investors may have hoped for a higher payout given the record profits, analysts suggest the company is prioritizing reinvestment and consolidation, especially as it looks to scale growth in 2025.
What next
Group Managing Director Fola Aiyesimoju emphasized that 2025 will focus on consolidating gains made in 2024, particularly through talent development, expanding market share, and maintaining operational efficiency.
- The company appears committed to building on the momentum, especially after several years of transformation efforts.
- The company’s total assets have grown to N157.7 billion, a 40% increase, while equity is now N66.4 billion, highlighting a stronger balance sheet than in previous years.
- However, challenges remain. Some business segments, such as Quick Service Restaurants, continue to post losses despite cost-cutting. Also, the decision to maintain its dividend at 22 kobo per share — despite a record profit — may not sit well with all shareholders hoping for higher payouts.
- The company earned N9.3 billion from exchange gain, which helped contribute about 50% of profits — a windfall that may not be repeated in subsequent years if currency conditions change.
Still, what started as a difficult journey in 2018 has evolved into one of Nigeria’s more remarkable corporate comebacks.
