UAC of Nigeria Plc reported a more than fourfold increase in profit after tax to N13.64 billion for the period ended March 31, 2026, from N3.32 billion in the corresponding period of 2025, driven by revenue expansion following the consolidation of C.H.I. Limited.
- +UACN profit rises more than 4-fold on revenue expansion
According to the Unaudited Condensed Consolidated Financial Statements for the period ended March 31st, 2026, revenue rose to N191.22 billion from N56.00 billion, supported by growth in the packaged food and beverages segment, which accounted for the largest share of sales.
According to the Unaudited Condensed Consolidated Financial Statements for the period ended March 31st, 2026, revenue rose to N191.22 billion from N56.00 billion, supported by growth in the packaged food and beverages segment, which accounted for the largest share of sales. The increase in revenue lifted gross profit to N54.81 billion from N14.26 billion, despite the cost of sales rising to N136.41 billion from N41.75 billion.
Segment data show packaged food and beverages revenue rose to N161.09 billion from N19.29 billion, reflecting the consolidation of C.H.I. and volume growth. Paint’s revenue rose to N11.59 billion from N10.09 billion on volume and price changes.
Edibles and feed revenue declined to N17.95 billion from N26.15 billion due to lower volumes and price pressure across the value chain, while quick-service restaurant revenue fell to N576 million from N611 million following store closures.
Fola Aiyesimoju, the company’s group managing director, disclosed in the Q1 earnings report that:“In the fourth quarter of 2025, UAC completed a significant acquisition – the purchase of C.H.I. Limited from The Coca-Cola Company, which was completed in October 2025. Our post-acquisition objectives were to integrate C.H.I. under UAC’s ownership, drive margin expansion, and optimise working capital.
“Our results for Q1 2026 reflect the consolidation of C.H.I.’s performance, continued strong performance at our Packaged Food and Beverages and Paints businesses, and the work we have done to drive improved performance at C.H.I. These contributed to revenue growth of 3.4x to N191 billion and profit before tax increasing 4.5x to N23 billion,” the GMD said.
Operating profit stood at N28.40 billion compared with N6.83 billion, with a margin at 14.8 percent from 12.2 percent, reflecting growth in volumes, margin expansion, and overhead absorption across the group.
Operating expenses increased to N26.86 billion from N8.12 billion due to the inclusion of C.H.I. costs, while the ratio of operating expenses to revenue declined to 14.0 percent from 14.5 percent.
Finance income climbed to N8.32 billion from N1.20 billion, supported by interest income and exchange gains, while finance costs rose to N14.81 billion from N3.29 billion due to higher borrowing costs. Net finance cost rose to N6.49 billion from N2.09 billion on higher borrowings linked to the acquisition, partly offset by a N6.8 billion foreign exchange gain and refinancing that reduced the cost of debt.
On the balance sheet, total assets stood at N597.61 billion as of March 2026, largely unchanged from December 2025. Cash and cash equivalents increased to N77.56 billion from N50.91 billion, reflecting improved liquidity. Retained earnings rose to N66.52 billion from N53.38 billion, supporting total equity growth to N83.95 billion from N69.77 billion.
UAC of Nigeria Plc generated N35.66 billion in cash from operating activities for the period ended March 31, 2026, reversing a negative cash position of N629.87 million recorded in the corresponding period of 2025, as improved earnings translated into stronger cash generation.
The improvement in operating cash flow reflects higher revenue and operating profit, which lifted cash inflows from core business activities. The group did not record corporate tax payments during the period, allowing more internally generated cash to be retained.
Net cash used in investing activities stood at N349.30 million, compared with an inflow of N945.27 million in the prior period. The outflow was driven by capital expenditures of N1.02 billion on property, plant, and equipment; N78.62 million on intangible assets; and a lease prepayment of N830.84 million. These were partly offset by N1.57 billion in interest received and proceeds from asset disposals.
Financing activities recorded a net cash outflow of N13.87 billion, against an inflow of N1.50 billion in the prior period, reflecting higher debt servicing. The company raised N57.73 billion in borrowings but repaid N59.91 billion and paid N11.47 billion in interest, resulting in a net reduction in cash from financing activities.
Exchange rate movements contributed N5.22 billion to cash flows during the period, supporting overall liquidity.
As a result, net cash and cash equivalents increased by N21.44 billion to N77.56 billion at the end of March 2026, from N50.91 billion at the beginning of the period.
UAC began the year with a share price of N91.00 and has since gained 64.8 percent on that price valuation, ranking it 36th on the NGX in terms of year-to-date performance.
