UAC of Nigeria Plc reports pretax loss of N4.37 billion in 2022

Key highlight

• UAC Nigeria Plc reported a loss before tax of N4.37 Billion in 2022 from a profit of N4.12 billion reported during the same period in 2021.
• Revenue rose to N109.27 billion from N101.38 billion recorded at the end of the 2021 financial year, representing a strong 30.16% growth.
• The company’s cost of sales rose by 13.34% to N95.03 billion from N83.84 billion in 2021

UAC of Nigeria Plc has released its audited consolidated and separate financial statement for the period year ended 2022.

The report shows that the company posted a loss before tax of N4.37 billion in the full year from a profit before tax of N4.12 billion in 2021.

This is on the back of increasing inflation which the economy continues to battle. The latest report released by the Nigerian Bureau of Statistics (NBS) has revealed that the inflation rate in Nigeria soared to a staggering 21.91% in February.

This marks a substantial increase from the inflation rate of 21.82% recorded in the previous month of January.

The report showed that the February 2023 headline inflation rate increased by 0.09% points compared to the January 2023 headline inflation rate.

The company reported revenue of N109.27 billion, an 8% growth from N101.38 billion in 2021.

During the period, the company’s cost of sales increased by 13.34% o stand at N95.03 billion against N83.84 billion in the same period of 2021 as inflation deepens.

Revenue

• 2022 FY: N109.27 billion
• 2021 FY: N101.38 billion
• Change: +8%

Gross Profit

• 2022 FY: N14.24 billion
• 2021 FY: N17.64 billion
• Change: -19.72%

Cost of sales  

• 2022 FY: N95.03 billion
• 2021 FY: N83.84 billion
• Change: +13.34%

Pre-tax profit

• 2022 FY: (N4.37 billion)
• 2021 FY: N4.12 billion
• Change-

Net Profit after tax

2022 FY: (N3.99 billion)

2021 FY: N2.59 billion

Change: –

Bottom line

The Company’s profit was impacted by the rising cost of sales following inflationary pressure and depreciation of the naira.

The total cost of sales accounted for 87% of the total revenue achieved by the company during the period under review N109.27 billion.