UACN Plc recorded a pre-tax profit of N6.44 billion in Q3 2023, a significant year-on-year improvement from the N1.11 billion loss recorded in Q3 2022.
The group recorded a revenue of N28.66 billion, an 11.2% year-on-year growth from the corresponding quarter in 2023.
This modified the group’s first nine-month earnings to N81.53 billion, a 4.8% growth from the corresponding period in 2022.
Key Highlights Q3 2023 vs Q3 2022
- Revenue: N28.66 billion, +11.23% YoY
- Gross profit: N5.52 billion, +63.19% YoY
- Gross profit margin: 19.3%, +613 bps YoY
- Selling and distribution expenses: N2.37 billion, -2.43% YoY
- Administrative expenses: N2.79 billion, +21.64% YoY
- Operating expenses: N5.16 billion, +9.26% YoY
- Earnings Before Interest and Taxes (EBIT): N7.14 billion, +937.32% YoY
- EBIT Margin: 24.9%, + 2,820 bps YoY
- Net finance income: -N838 million, -204.73% YoY
- Profit before tax: N6.44 billion, +681.84% YoY
- Profit before tax margin: 22.5%, 2,677 bps YoY
- Profit after tax: N5.48 billion, +523.98% YoY
- Profit margin: 19.1%, 2,415 bps YoY
- Basic earnings per share: N1.93, +767.0% YoY
Insights
Fola Aiyesimoju, the Group Managing Director in commenting on the results, noted:
- “In Q3 2023, our financial performance was positively impacted by one-off gains from real estate divestments which are non-recurring.
- “Operating conditions remained difficult with rising inflation and consumer income under pressure. The outlook remains challenging, however we anticipate improvement driven by the various ongoing reforms.”
In Q3 2023, the group’s revenue rose by 11% compared to the previous year, reaching ₦28.7 billion, driven by higher prices across all segments and volume growth in the Packaged Food and Beverages and Paints segments.
Each operating segment experienced revenue growth: Packaged Food and Beverages (up 32%), Paints (up 27%), QSR (up 2%), and Animal Feeds and Other Edibles (up 2%).
