UAC of Nigeria PLC has reported a full-year pre-tax profit of N25.8 billion for 2024, marking a 109.30% increase from last year’s N12.3 billion.
In the fourth quarter alone, pre-tax profit reached N4.8 billion, up 77.86% compared to N2.7 billion in the same quarter last year.
The fourth-quarter revenue rose to N64.4 billion, a 65.20% increase from N39 billion last year, contributing to a full-year total of N197.6 billion, up from N120.5 billion in 2023.
Out of the full-year revenue of N197.6 billion, Edibles & Feed contributed 50.95%, while Packaged Food & Beverages made up 29.14%.
Key Highlights:
- Revenue: N197.6 billion, +63.96% YoY
- Cost of sales: N151.3 billion, +52.52% YoY
- Gross profit: N46.2 billion, +117.16% YoY
- Other operating income: N2.6 billion, -70.09% YoY
- Selling and distribution expenses: N11.4 billion, +30.26% YoY
- Administrative expenses: N18.8 billion, +64.41% YoY
- Operating profit: N18.6 billion, +105.02% YoY
- Finance income: N12.9 billion, +117.48% YoY
- Finance cost: N6.8 billion, +93.49% YoY
- Pre-tax profit: N25.8 billion, +109.30% YoY
- Post-tax profit: N16.9 billion, +90.43% YoY
Commentary
UAC of Nigeria reported a substantial full-year revenue increase of 63.96% year-over-year, climbing from N120.5 billion to N197.6 billion for FY 2024.
- This growth was predominantly driven by the Edibles & Feed segment, generating N100.8 billion (50.95% of total revenue), followed by the Packaged Food & Beverages category, which contributed N57.6 billion.
- In addition, the Paints division delivered N36.3 billion, representing 18.38% of total revenue, while Quick Service Restaurants and other categories added N2.5 billion and N221 million, respectively.
Despite a 52.52% rise in the cost of sales, which reached N151.3 billion from N99.2 billion, UAC achieved a gross profit of N46.2 billion—an increase of 117.16% from the previous year’s N21.3 billion.
- However, ‘other operating income’ declined falling from N8.8 billion to N2.6 billion.
- Selling and distribution expenses rose by 30.26% year-over-year, increasing to N11.4 billion from N8.7 billion, while administrative expenses surged by 64.41% to N18.8 billion, up from N11.4 billion.
On a brighter note, operating profit soared by 105.02% year-over-year, reaching N18.6 billion compared to N9 billion last year.
Finance income also grew strongly by 117.48% to N12.9 billion, with exchange gains contributing N9.3 billion, while interest from loans, bonds, and short-term deposits accounted for N3.5 billion.
- However, finance costs increased significantly by 93.49% year-over-year to N6.8 billion, up from N3.5 billion.
Ultimately, UAC reported a pre-tax profit of N25.8 billion, marking a robust year-over-year increase of 109.30% from N12.3 billion reported the previous year.
Asset position
In 2024, UAC’s total assets reached N156.8 billion, a significant increase from N112.3 billion the previous year.
Non-current assets amounted to N52.2 billion, up from N48.3 billion, with Property, Plant, and Equipment contributing N27.8 billion to this total.
Current assets experienced substantial growth of 63.9%, rising to N104 billion from N63.4 billion in the prior year.
- This increase was driven by inventories valued at N54.3 billion and cash reserves totaling N40.3 billion.