UAC’s 9M pre-tax profit jumps 262.5% to N37.69bn as revenue triples

UAC of Nigeria Plc reported a pre-tax profit of N37.69 billion for the nine months ended September 2026, up 262.5% from N10.40 billion in the corresponding period of 2025.

For the third quarter, pre-tax profit stood at N3.25 billion, compared with a pre-tax loss of N703 million in Q3 2025.

According to the company’s unaudited financial results announced on October 30, 2026, revenue rose by 227.7% to N523.00 billion from N159.58 billion, driven largely by the consolidation of C.H.I. Limited.

Key Highlights

• Revenue: N523.00 billion (Up 227.7% YoY from N159.58 billion).
• Gross profit: N142.55 billion (Up 262.1% YoY from N39.37 billion).
• Operating profit (EBIT): N59.54 billion (Up 343.7% YoY from N13.42 billion).
• Profit before tax: N37.69 billion (Up 262.5% YoY from N10.40 billion).
• Profit after tax: N21.91 billion (Up 307.1% YoY from N5.38 billion).
• Earnings per share: 722 kobo (Up from 179 kobo).
• Cash and cash equivalents: N31.54 billion (Down 38.0% from N50.91 billion as of December 31, 2025).
• Total assets: N516.89 billion (Down 13.4% from N597.06 billion as of December 31, 2025).
• Shareholders’ funds (total equity): N70.85 billion (Up 1.5% from N69.77 billion as of December 31, 2025).

Management commentary

In its earnings release, Group Managing Director Fola Aiyesimoju attributed the improved performance to the Packaged Food and Beverages and Paints businesses.

He also highlighted stronger cash generation, supported by the release of working capital, and reaffirmed the group’s focus on completing its announced divestments and reducing debt.

Driving the numbers

UAC’s nine-month revenue more than tripled to N523.00 billion from N159.58 billion in the corresponding period of 2025, driven primarily by its Packaged Food and Beverages segment.

• The segment generated N436.20 billion in revenue, compared with N56.94 billion a year earlier, representing growth of 666.1% and accounting for approximately 83.4% of group turnover.

The sharp increase largely reflected the consolidation of C.H.I. Limited, acquired in October 2025, alongside growth at UAC Foods Limited.

• Paints revenue increased by 11.3% to N33.69 billion from N30.27 billion, contributing approximately 6.4% of total revenue.

Management attributed the segment’s third-quarter growth to a 21% increase in sales volumes, supported by its decorative paint range and the relaunch of Sandtex Select in August 2026.

• Meanwhile, Edibles and Feed revenue declined by 27.4% to N51.30 billion from N70.64 billion, reflecting weaker performance in agricultural commodities.
• Quick Service Restaurants revenue also declined by 3.4% to N1.86 billion from N1.92 billion, although third-quarter revenue increased by 3.6% following improved sales performance across stores.

The figures show that UAC’s overall revenue growth was concentrated in Packaged Food and Beverages, while performance across other segments remained mixed.

• Gross profit increased by 262.1% to N142.55 billion from N39.37 billion, while the cost of sales rose to N380.45 billion from N120.21 billion.
• Despite higher costs, gross profit margin improved to 27.3% from 24.7%, reflecting a greater contribution from the higher-margin Packaged Food and Beverages business and moderating input prices.
• Operating expenses increased to N86.54 billion from N27.98 billion, with selling and distribution expenses rising to N50.78 billion and administrative expenses reaching N35.75 billion.

However, operating expenses declined as a proportion of revenue to 16.5% from 17.5%, indicating improved cost absorption as turnover expanded.

Consequently, operating profit, measured by EBIT in the earnings release, increased by 343.7% to N59.54 billion from N13.42 billion, with operating margin improving to 11.4% from 8.4%.

• Finance costs remained a significant pressure on earnings, with net finance costs rising to N23.94 billion from N5.74 billion in the corresponding period of 2025.

Management attributed the higher finance burden to increased borrowings following the acquisition of C.H.I. Limited.

• Despite the higher financing costs, profit before tax rose by 262.5% to N37.69 billion, while profit after tax increased by 307.1% to N21.91 billion.
• Third-quarter performance also strengthened, with revenue rising by 221.4% to N158.03 billion from N49.17 billion.
• Cash generation also improved significantly during the nine-month period, with net cash generated from operating activities reaching N113.16 billion, compared with N27.17 billion a year earlier.

According to management, free cash flow reached N98.44 billion, supported by higher operating profit and a N33.4 billion working capital release.

Balance Sheet

UAC of Nigeria’s total assets declined by 13.4% to N516.89 billion as of September 30, 2026, from N597.06 billion at the end of 2025, largely reflecting reductions in inventories, receivables and cash balances.

Inventories fell to N153.33 billion from N214.53 billion, while current trade and other receivables declined to N18.78 billion from N25.67 billion.

• Cash and cash equivalents also dropped by 38.0% to N31.54 billion from N50.91 billion.
• On the funding side, total liabilities declined by 15.4% to N446.04 billion from N527.29 billion, while shareholders’ funds increased by 1.5% to N70.85 billion from N69.77 billion.
• Total borrowings fell by 23.8% to N262.63 billion from N344.81 billion, comprising N102.97 billion in current debt and N159.66 billion in non-current debt.
• The reduction reflected borrowing repayments of N235.54 billion against new borrowing proceeds of N173.22 billion, alongside an exchange gain of N11.28 billion and the reclassification of N7.93 billion in borrowings to liabilities held for sale.

Consequently, net debt declined by N62.8 billion to approximately N231 billion, while the net debt-to-last-twelve-months EBITDA ratio improved to 2.2 times from 5.9 times at the end of 2025.

The group also disclosed agreements to sell its 43% stake in DP World Logistics Limited and 73.29% holding in Livestock Feeds Plc, both subject to regulatory approval, with the investments classified as held for sale.

Market reaction

UAC of Nigeria’s share price closed at N181.00 on Friday, October 30, 2026, unchanged from its closing price on October 29, as investors reacted to the company’s nine-month financial results.

• The stock has gained 98.9% year-to-date from its opening price of N91.00 at the beginning of 2026, placing it 23rd on the Nigerian Exchange (NGX) in terms of year-to-date performance.

The shares also traded at N181.00 throughout the last ten trading sessions shown in the supplied market data, indicating a period of price stability.