UAC of Nigeria PLC released its unaudited financial results for the year ended December 31, 2025, presenting a year of dramatic contrasts.
The conglomerate reported a steep decline in profitability, with pre-tax profit plunging to N7.5 billion, a sharp fall from the N25.5 billion posted in 2024.
This 71% drop occurred despite the company achieving a substantial 74.4% surge in revenue, which grew to N343.4 billion from N197 billion the previous year. The financial performance underscores a significant squeeze between aggressive top-line growth and rapidly escalating costs.
The impressive revenue growth was powered overwhelmingly by the company’s Packaged Food & Beverages segment, which exploded by 254% to contribute N205 billion, accounting for approximately 60% of the group’s total revenue for the year.
This indicates a major strategic shift and successful market penetration within this division. However, this revenue expansion was severely undermined by a parallel and even steeper rise in expenses.
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The cost of sales increased by 77.6% to N267.4 billion, reflecting intense input cost inflation and the operational expenses tied to the higher sales volume.
The most significant pressure on profits came from a surge in finance costs, which skyrocketed to N26.8 billion from N6.7 billion in 2024. This increase is directly attributable to higher borrowings undertaken to fund the major acquisition of C.H.I. Limited.
While finance income also saw a healthy rise to N9.3 billion, it was insufficient to offset the hefty finance expenses. Consequently, profit after tax collapsed by 97% year-on-year to just N504 million, and earnings per share fell drastically to 29 kobo.
On the balance sheet, the impact of the acquisition is unmistakable. Total assets more than tripled, leaping to N524.9 billion from N157.7 billion, largely due to the addition of N121.4 billion in property, plant, and equipment from C.H.I. Limited.
This positions the company with a significantly larger operational base for future periods. Conversely, total shareholder equity declined by 9% to N60.5 billion, primarily due to a reduction in retained earnings following the year’s diminished profits.
Despite the stark decline in profitability, market sentiment appears forward-looking, with the company’s share price having experienced substantial gains, suggesting investor confidence in the long-term strategic value of its expanded asset base and market position.
