UAC Nig Plc has released its Audited financial result for the full year ended December 2021, revealing a profit of N2.59 billion, representing a 33% decline from the prior-year period, as revenue grew by 25%.
The period under review witnessed a persistent increase in prices of goods and services, as inflationary pressures affected both consumers and producers. Hence, producers were also faced with a significant increase in the cost of raw materials and general production costs.
Although the company recorded growth in sales on the back of double-digit food inflation, bottom-line profit was greatly subdued by production, finance costs which increased by a whopping 28% and 194%, respectively, during the period under review.
Key highlights of the result
- A cursory view of the result shows that the group operates 5 key segments including Animal feeds, Paints, Food and Beverages, Quick Service Restaurants, and Others.
- The Animal feeds segment raked in 60% of the total revenue, generating N62 billion, the highest revenue by segment. Food and Beverages generated the second-highest revenue, raking in N24 billion, representing 23% of total revenue. The Paints, Quick Service Restaurants, and Others segments made up the remaining 17% of the total revenue.
- Interest income from bank deposits stood at N907 million, as against N1.05 billion in 2020. The group also received interest on Eurobonds, recording N301 million.
- In addition, the company also made money from gains on investment properties, raking in a total of N1.14 billion during the financial period.
- UAC Nig Plc revenue performance for the period was affected by high costs of sales as well as selling, distribution and administrative expenses, which also affected profit as a trickled down effect.
- A further look at the financial results showed the group’s total assets are now at N98.46 billion, net assets declined by 16.21% to N50.84 billion. The group’s long-term borrowings stood at N339 million
UAC Nig Plc’s earnings per share (EPS) for the period was at N0.63, a 8.70% decrease from N0.69 in FY 2020.
The company last traded at N12.10 per share and has grown by 27.37% from year-to-date.
