UACN (UACN) recorded a decline in its 2020 FY pre-tax profit, as total revenue increased.
The conglomerate, operating in the Food and Beverage, Real Estate, Paint and Logistics sectors, reported a pre-tax profit of N5.36 billion in 2020 FY compared to the N7.46 billion recorded in 2019.
Its Total profit for the period was ₦4.3 billion in FY 2020, a reversal from the ₦9.3 billion loss reported in 2019. Also, the Earnings per share for 2020 was 106 kobo, up from negative 183 kobo in FY 2019.
The Free Cash Flow for the period was negative ₦3.3 billion in FY 2020, compared with negative ₦5.2 billion in FY 2019. Free cash flow in FY 2020 improved significantly on account of the ₦4.2 billion gain from the change in net assets of disposal group held for sale, as a result of the sale of controlling stake in MDS and UPDC.
It was also impacted by higher net capital expenditure YoY (+63% increase to ₦4.4 billion in FY 2020) from investments in production capacity
and cold chain distribution for the Packaged Food and Beverages segment.
Key highlights for 2020 FY
- Revenue increased to N81.59 billion from N79.02 billion, +3.02% YoY.
- Revenue from animal feeds and other edibles increased to N51.65 billion, +5.59% YoY.
- Revenue from paints declined to N10.33 billion, -6.14% YoY.
- Revenue from packaged foods and beverages increased to N17.85 billion, +1.8% YoY.
- Revenue generated from QSR increased to N1.53 billion, +1.87% YoY.
- Other revenue declined to N229.34 million, – 3.8% YoY.
- Other operating income declined to N1.12 billion, -52.31% YoY.
- Cost of sales increased to N65.88 billion, +5.28% YoY.
- Finance income declined to N1.06 billion, -61.95% YoY.
- Finance costs declined to N504.06 million, -49.14% YoY.
- Pre-tax profits declined to N5.36 billion, -28.14% YoY.
- Earnings Per Share from continuing operations declined to N85, -35.61% YoY.
Commenting on the performance, Group Managing Director, UACN, Fola Aiyesimoju, stated: “FY 2020 was challenging, with operational disruptions related to COVID-19 and ENDSARS protests. I thank my colleagues across the Group for their courage, sacrifice, and dedication in navigating complexity.
“We focused on executing our strategy, implementing initiatives relating to UPDC, significantly reducing leverage and increasing cash, strengthening management, and driving profitability. Operating performance for the year was negatively impacted by aforementioned disruptions, as well as, input cost escalation.
“Our efforts resulted in net income of N4.3 billion in 2020. We benefited from N1.2 billion in non-recurring gains from investments in associates, MDS Logistics Limited (“MDS Logistics”) and UACN Property Development Company PLC (“UPDC”).”