UAC of Nigeria reports 73% revenue growth to US$245.14M despite profit decline in 2025
UAC of Nigeria posts strong revenue growth driven by CHI acquisition and core operations, but profitability declines due to rising finance costs and earnings pressure.
NIGERIA – UAC of Nigeria Plc has reported a 73% increase in revenue to ₦340.47 billion ($245.14 million) for the financial year ended December 31, 2025, compared to the previous year, driven by improved performance across its business segments and strong topline expansion.
Operating profit rose by 51% to ₦28.50 billion ($20.52 million) from ₦18.87 billion ($13.59 million), reflecting enhanced operational efficiency and improved cost management across the Group’s core businesses.
The company’s performance was supported by the strategic acquisition of C.H.I. Limited, alongside sustained organic growth within its existing portfolio. The acquisition significantly expanded the Group’s scale and strengthened its presence in key consumer categories.
Despite this growth, the company recorded a sharp reversal in its net finance position, posting a net finance cost of ₦15.50 billion ($11.16 million) compared to a net finance income of ₦5.96 billion ($4.29 million) in 2024. This shift had a significant impact on overall profitability.
As a result, profit before tax declined by 36% to ₦16.43 billion ($11.83 million) from ₦25.55 billion ($18.40 million), while profit after tax fell by 39% to ₦9.91 billion ($7.14 million), down from ₦16.31 billion ($11.74 million) in the previous year. Earnings per share also dropped to 362 kobo ($0.0026) from 497 kobo ($0.0036), reflecting reduced returns to shareholders.
On the balance sheet, total equity and liabilities rose sharply by 279% to ₦597.06 billion ($429.88 million) from ₦157.73 billion ($113.56 million), indicating substantial expansion in the company’s asset base, largely driven by acquisition and consolidation activities.
Group Managing Director Fola Aiyesimoju described the year as transformative for the company.
“2025 was a pivotal year for UAC. Our businesses, CAP PLC and UAC Foods Limited, continued to deliver strong performance. This, together with the acquisition of C.H.I. Limited, has significantly increased the scale of our Group,” he said.
He added that the acquisition provides strategic advantages beyond scale.
“CHI gives us a presence in large, growth categories, including drinking yoghurt, evaporated milk, and juices… while the SuperBite and Beefie brands complement our existing presence in the snacks category. Importantly, the addition of CHI talent has bolstered our overall leadership strength,” Aiyesimoju said.
Looking ahead, the company is focused on enhancing value creation.
“With the acquisition completed, our focus is on executing our value creation plan, prioritising margin expansion and capital optimisation to deliver stakeholder value consistent with our growth strategy,” he added.
Despite the decline in earnings, UAC maintained a dividend payout of 22 kobo per share and proposed a higher dividend of 100 kobo per share, representing a 355% increase, reflecting confidence in future cash flows.
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