UAC of Nigeria Plc has reported a 74% year-on-year increase in revenue to ₦343.4 billion for the financial year ended 31 December 2025, following the completion of its landmark acquisition of C.H.I Limited, even as profitability was pressured by significant one-off transaction costs.
In its unaudited results released on 30 January 2026, the consumer goods and services group said operating profit rose 15% to ₦21.6 billion, while profit before tax (PBT) declined to ₦7.5 billion from ₦25.5 billion in the prior year.
However, excluding ₦21.2 billion in one-off acquisition-related costs, UAC said underlying PBT climbed 76% to ₦28.7 billion, compared with an adjusted ₦16.3 billion in 2024.
Q4 Performance Hit by Acquisition Costs
For the fourth quarter ended December 2025, UAC posted revenue of ₦183.8 billion, up 62% year-on-year, reflecting a three-month contribution from newly acquired C.H.I Limited.
Operating profit for the quarter declined to ₦8.2 billion from ₦12.2 billion a year earlier, weighed down by transaction and integration costs linked to the acquisition. Excluding these one-offs, underlying operating profit rose 66% to ₦20.3 billion.
The Group recorded a loss before tax of ₦2.9 billion in Q4 2025, compared with a profit of ₦10.6 billion in Q4 2024. Adjusted for exceptional items, including ₦12.1 billion in acquisition costs and ₦6.8 billion in hedge expenses, underlying PBT stood at ₦16 billion, representing a 49% increase year-on-year.
Commenting on the results, Group Managing Director, Fola Aiyesimoju, described 2025 as a transformational year for the company.
“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,” he said.
Aiyesimoju noted that the acquisition expanded UAC’s portfolio into fast-growing categories such as drinking yoghurt, evaporated milk, and juices, anchored by brands including Chivita, Hollandia, and Capri-Sun, while SuperBite and Beefie strengthened its snacks offering.
“Group profitability was impacted by ₦21 billion one-off acquisition costs. Excluding these, profit before exceptional items increased by 76% to ₦29 billion,” he added.
With the acquisition completed, he said the Group’s focus has shifted to margin recovery, working capital optimisation, and deleveraging, in line with its long-term value creation strategy.
Margins, Debt and Cash Flow
Gross profit for FY 2025 rose 64% to ₦76 billion, although gross margin narrowed to 22.1%, reflecting integration challenges and inventory write-downs at C.H.I Limited.
Operating expenses increased sharply, driven by post-acquisition consolidation and transaction costs, while net finance costs surged to ₦17.5 billion, compared to net finance income in 2024.
Following the acquisition, long-term debt-to-EBITDA stood at 2.3x, with management signalling plans to gradually reduce leverage. Free cash flow turned negative at ₦2.2 billion, compared to a positive ₦2.0 billion in the prior year.
Segment Performance
- Packaged Food & Beverages: Revenue surged to ₦147.6 billion, driven by the consolidation of C.H.I Limited. Excluding one-off costs, the segment recorded ₦13.8 billion profit before tax.
- Paints: Revenue rose 14.7% to ₦14.6 billion, with PBT increasing 71% to ₦3.6 billion on improved product mix.
- Edibles & Feed: Revenue fell 39%, with the segment posting a ₦4.9 billion loss before tax, largely due to inventory write-downs and declining agricultural commodity prices.
- Quick Service Restaurants: Revenue grew 26%, while operating losses narrowed due to improved cost controls.
