UAC of Nigeria PLC has reported a dramatic surge in first-quarter earnings, with Profit Before Tax (PBT) rising by 348% year-on-year, driven largely by the full consolidation of C.H.I. Limited, the market-leading dairy and juice business acquired from The Coca-Cola Company in October 2025.
The results mark a pivotal moment for UACN, underscoring how the CHI acquisition is reshaping the Group’s earnings profile, scale, and competitive positioning within Nigeria’s fast-moving consumer goods (FMCG) sector.
Explosive Earnings Growth
- Profit Before Tax (PBT): ₦22.59 billion, up 348% from ₦5.04 billion
- Operating Profit (EBIT): ₦28.39 billion, up 316% from ₦6.83 billion
- Gross Profit: ₦54.81 billion, up 285% from ₦14.26 billion
- Profit After Tax: ₦13.64 billion, up 311%
- Earnings Per Share (EPS): 449 kobo, up 324.5% from 106 kobo
Profitability ratios also strengthened, with PBT margin rising to 11.8% (from 9.0%) and operating margin improving to 14.8% (from 12.2%), reflecting both scale efficiencies and improved cost management.
CHI Acquisition Powers Growth
The standout driver of this performance is the full integration of CHI into UACN’s Packaged Food and Beverages segment. The acquisition has significantly expanded the Group’s footprint in Nigeria’s consumer goods market, bringing high-performing brands such as Chivita, Hollandia, and Capri-Sun into its portfolio.
Segment performance was particularly strong:
- Revenue: ₦161.09 billion, up 735% year-on-year
- EBIT: ₦25.59 billion, up 661%
- PBT: ₦21.46 billion, up 522%
At the Group level, revenue climbed to ₦191.22 billion, representing a 241.5% increase from ₦56.00 billion in Q1 2025, with CHI accounting for the bulk of the expansion.
Management highlighted that early post-acquisition integration efforts are yielding results, driven by procurement efficiencies, pricing optimisation, and improved overhead absorption across the enlarged business.
Margin Expansion and Operational Efficiency
UACN’s gross margin expanded by 321 basis points to 28.7%, supported by a more favourable earnings mix skewed toward higher-margin segments, particularly food and beverages and paints.
Group Managing Director, Fola Aiyesimoju, said: “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. We are encouraged by early progress but cognisant of the work that lies ahead.”
Net finance costs increased during the quarter, reflecting borrowings tied to the CHI acquisition. However, this was partially offset by a ₦6.8 billion foreign exchange gain and refinancing initiatives that reduced the Group’s weighted average cost of debt.
Encouragingly, leverage metrics improved, with long-term debt to last twelve months (LTM) EBITDA declining to 2.1x, signalling strengthening balance sheet resilience despite the recent acquisition.
