UAC of Nigeria PLC recorded a dramatic turnaround in its 2024 financial performance, with profit before tax surging 107% year-on-year to ₦26 billion, as the group capitalized on strong volume growth and pricing discipline across its core business segments. Adjusted for non-recurring gains in 2023, operating profit expanded by an extraordinary 780%, signaling a broad-based recovery in profitability.
The group, which operates across food, feed, paints, logistics, real estate, and quick-service restaurants, reported revenues of ₦197 billion for the year ended December 31, 2024 — a 63% increase from ₦121 billion in 2023. The performance was underpinned by stellar growth in its Packaged Food and Beverages segment, which doubled revenue to ₦58 billion, and Edibles and Feed, which grew 54% to ₦102.8 billion.
Gross profit climbed 117% to ₦46 billion, with margins expanding by 583 basis points to 23.5%, driven by strategic pricing, operational efficiencies, and lower conversion costs. Operating profit rose to ₦19 billion from ₦9 billion the previous year. However, when adjusted for a ₦7 billion one-off property gain in 2023, the 2024 figure marks a nearly eightfold increase on the group’s underlying operating profit of ₦2.1 billion.
This growth was driven by double-digit sales growth across all its core operating segments, including Packaged Food and Beverages, Edibles and Feed, and Paints. The packaged food and beverage segment alone grew 102% year-on-year, buoyed by volume expansion and product innovation, including the launch of Gala Chin-Chin, Kingsway Loaf, and new dairy products under the Supreme brand.
“This outcome reflects the hard work, skill, and dedication of leaders across the Group,” said Group Managing Director Fola Aiyesimoju. “We pursued new markets, offered value-led products, and applied rigorous focus on pricing and risk management — particularly in navigating interest rate and foreign exchange headwinds.”
The Group’s earnings per share rose 58% to 497 kobo, while return on equity climbed to 23%, up from 18% in 2023. Net finance income more than doubled to ₦5.9 billion, bolstered by higher treasury yields that offset elevated borrowing costs.
Operating expenses rose by 51% to ₦30.6 billion, reflecting broader inflationary pressures and higher dollar-linked costs due to naira depreciation. However, the opex-to-sales ratio declined to 15.5%, from 16.8% in 2023, suggesting improved cost efficiency despite macroeconomic volatility.
UAC’s Paints business, led by Chemical and Allied Products Plc, saw a 52% rise in revenue and a 67% increase in operating profit. At the same time, losses in its Quick Service Restaurants segment narrowed marginally following the closure of underperforming outlets.
Looking ahead, Aiyesimoju said UAC would continue to focus on building scale, simplifying operations, and investing in talent. “Our priority is profitable growth, and we remain focused on creating long-term shareholder value,” he said.
