UAC of Nigeria PLC reported a pre-tax profit of N10.4 billion for the nine months ended September 30, 2025, representing a 50.1% decline from the N20.8 billion posted in the same period of 2024.
On a like-for-like basis, adjusting for one-off acquisition-related costs and FX impacts, underlying profit before tax stood at N12.2 billion, up from N10.6 billion in 2024.
For the third quarter of 2025, the company reported a loss before tax of N703 million, a sharp contrast to the N5.9 billion profit recorded in Q3 2024, and a decline from the N6.1 billion profit in Q2 2025.
The result missed expectations due to acquisition-related charges and underperformance in key segments. The quarter also marked the first time in recent years that UAC posted a quarterly pre-tax loss, despite strong segment growth in Paints and Packaged Foods.
Key Highlights
- Revenue: N159.6 billion (Up 19.8% YoY from N133.2 billion)
- Gross Profit: N39.4 billion (Up 28.1% YoY from N30.7 billion)
- Operating Profit: N13.4 billion (Up 9.1% YoY from N12.3 billion)
- Profit Before Tax: N10.4 billion (Down 50.1% YoY from N20.8 billion)
- Profit for the Period: N5.4 billion (Down 60.6% YoY from N13.7 billion)
- Earnings Per Share: 179 Kobo (Down from 426 Kobo in 2024)
- Total Assets: N161.5 billion (Up from N157.7 billion as at December 2024)
- Total External Debt: N43.3 billion (Q3 2025; from N41.5 billion in December 2024)
- Cash Balance: N46.8 billion (Up from N40.6 billion in December 2024)
Group MD, Fola Aiyesimoju, highlighted that the loss in Q3 was due to acquisition-related costs, higher finance charges, and the poor performance of the Animal Feeds segment, which offset the strong gains in Paints and Packaged Foods.
UAC completed the acquisition of a 100% equity stake in Chivita | Hollandia (CHI Limited) on October 3, 2025, following regulatory approval from the Federal Competition and Consumer Protection Commission (FCCPC). The acquisition gives UAC full control of one of Nigeria’s leading juice and dairy businesses and marks a significant expansion of its footprint in the fast-moving consumer goods sector.
While the company did not disclose the terms of the deal, it recorded a N19.1 billion line item under “deposit for investment” in its financial statements, which is believed to be related to the CHI Limited acquisition.
UAC noted that initial accounting for the business combination had not been completed at the time of reporting, with full details expected in the next financial disclosure.
Driving the Numbers
Revenue performance was driven by strong growth in the Paints segment (Up 27% YoY to N10.2 billion) and Packaged Food and Beverages (Up 25% YoY to N17 billion), buoyed by volume increases and pricing.
- However, the Animal Feeds and Edibles segment was a major drag, with revenue down 25% to N21.4 billion due to a steep drop in commodity prices, especially maize and soya, leading to high-cost inventory and lower market prices.
- Operating expenses ballooned by 56% in Q3 2025 due to N2.3 billion in one-off transaction costs related to the C.H.I. Limited acquisition and rising distribution, personnel, and travel expenses. Finance costs surged due to higher borrowing rates and the absence of last year’s FX gains.
- As a result, the company posted a pre-tax loss of N703 million in the quarter.
Despite the Q3 setback, cash flow from operations remained strong, with free cash flow at N18.5 billion and cash balance rising to N46.8 billion.
The company’s gearing slightly improved to 60% from 62%, and the quick ratio strengthened to 1.0x from 0.7x. Net debt to EBITDA rose to 0.6x from 0.0x due to higher debt and lower EBITDA in Q3.
Market Reaction
The market reacted negatively to the results, with UAC’s share price falling 6.47% to close at N66.5 on the day the results were announced.
Despite this dip, the stock remains one of the best performers on the NGX this year, up 207% year-to-date, though down from its peak of N81 in May 2025. The company did not declare a dividend in the Q3 2025 reporting period.
