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Business

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UAC Records Revenue Surge, Profit Impacted by One-Off Acquisition-Related Costs

UAC of Nigeria Plc has announced its unaudited financial results for the fourth quarter and year ended December 31, 2025, recording a 74% increase in revenue to ₦343.4 billion, following the successful completion of its transformational acquisition of C.H.I. Limited alongside continued contributions from the Group’s core operating businesses.

The 2025 financial year marked a strategic inflection point for the Group, characterised by a significant expansion in scale, entry into large consumer growth categories, and strong underlying earnings momentum, albeit alongside ₦21.2 billion in one-off acquisition-related costs incurred during the year. Excluding these non-recurring costs, underlying profit before tax rose by 76% year-on-year to ₦28.7 billion, underscoring the strength of the Group’s core operating performance.

In the fourth quarter alone, the inclusion of three months’ performance from C.H.I. Limited drove a 62 per cent year-on-year increase in revenue to ₦183.8 billion, providing early evidence of the earnings potential of the expanded portfolio.

Operating profit stood at ₦8.2 billion, down from ₦12.2 billion in Q4 2024, reflecting the impact of one-off transaction costs related to the acquisition of C.H.I. Limited. Excluding these one-off costs, operating profit surged to ₦20.3 billion, representing a 66 per cent year-on-year increase.

The acquisition of C.H.I. Limited has significantly broadened UAC’s operating base, adding leading consumer brands such as Chivita, Hollandia, and Capri-Sun, while SuperBite and Beefie has further strengthened the Group’s snacks portfolio. The transaction has also deepened leadership and operational capacity across the Group.

Commenting on the results, Group Managing Director, Mr. Fola Aiyesimoju, said: “2025 was a pivotal year for UAC. The completion of the acquisition of C.H.I. Limited significantly increased the scale of our Group, with revenue reaching ₦343 billion, a 74% increase compared to 2024. While Group profitability was impacted by ₦21 billion one-off acquisition costs, our underlying performance was strong, with profit before exceptional items rising by 76% to ₦29bn, from ₦16bn in 2024. With the acquisition completed, our focus is on executing our value creation plan, prioritising margin recovery, and working capital optimisation, to deliver stakeholder value consistent with our growth strategy.”

Segment performance reflected a mix of consolidation gains and macroeconomic headwinds. The Packaged Food and Beverages segment emerged as the Group’s largest contributor following the inclusion of C.H.I. Limited, delivering ₦204.5 billion in full-year revenue.

The Paints segment also delivered another year of steady growth, supported by increased demand for premium products and improved product mix. Revenue rose by 23 per cent year-on-year, while profit before tax grew by over 50 per cent, reflecting pricing discipline and operational efficiency.

Meanwhile, the Quick Service Restaurants business continued its recovery trajectory, recording improved revenues and a further reduction in operating losses following tighter cost controls.

In the Edibles and Feeds segment, operating conditions remained challenging due to declining agricultural commodity prices. During the fourth quarter, the segment recognised an inventory write-down of ₦4.1 billion to net realisable value, a prudent measure that strengthens balance sheet resilience and supports improved margin performance going forward.

Beyond its operating subsidiaries, UAC also benefited from improved contributions from associate companies, supported by sales of non-core property assets at MDS Logistics Limited.

Looking ahead, UAC of Nigeria Plc enters 2026 with a strengthened portfolio, improved earnings base, and a clear execution agenda, positioning the Group to unlock value from its expanded portfolio and deliver consistent long-term shareholder value.

 

About UAC of Nigeria Plc

UAC of Nigeria PLC (UACN) is a holding company with subsidiary and associate companies operating in Packaged Food and Beverages, Paints, Edibles and Feeds, Quick Service Restaurants, Real Estate, and Logistics sectors. UAC has played a prominent role in Nigeria’s development for over a century. The company is focused on building its businesses into leaders in their chosen segments. 

UAC’s portfolio includes leading brands such as Gala Sausage Roll, Gala Chin-Chin, Kingsway Loaf, Kingsway Pastry Roll, Swan natural spring water, Capri-Sun, Chivita juice, Hollandia, SuperBite, Beefie, Dulux paint, Sandtex paint, Grand soya oil and cereals, Vital Feeds, Mr. Bigg’s and Debonairs Pizza.

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