UAC of Nigeria Plc has released its unaudited financial results for the third quarter and nine months ended September 30, 2025, revealing a revenue of N159.6 billion. These UAC Nigeria Q3 2025 results indicate a notable financial performance for the company, highlighting both challenges and successes.
Nine-Month 2025 Performance
For the nine months to September 2025, revenue grew by 19.8% to N159.6 billion (9M 2024: ₦133.2 billion), driven by solid sales in the Paints, Packaged Food and Beverages, and Quick Service Restaurant segments. Gross profit increased 28% year-on-year to N39.4 billion, with the gross margin improving by 159 basis points to 24.7%, reflecting better product mix and pricing discipline, as detailed in the UAC Nigeria Q3 2025 results.
However, higher operating expenses weighed on margins. Administrative expenses rose 44% to N17.5 billion, while selling and distribution costs climbed 35% to N10.5 billion, resulting in total operating expenses of N28.0 billion, up 41% from the prior year. Consequently, the Group’s operating expenses as a percentage of revenue increased to 17.5% from 14.9% in 2024.
Earnings before interest and tax (EBIT) improved 9.1% to ₦13.4 billion, though the EBIT margin declined slightly to 8.4% from 9.2%. Higher finance costs of N5.7 billion, compared to net finance income of N7.8 billion a year earlier, and foreign exchange impacts reduced overall profitability. As a result of the conditions highlighted in the UAC Nigeria Q3 2025 results, profit before tax declined 50% year-on-year to N10.4 billion, while profit after tax fell 61% to ₦5.4 billion.
The Group’s annualised return on equity (ROE) stood at 11.2%, down from 36.3% in 2024, while return on invested capital (ROIC) moderated to 20.7% from 35.8%, reflecting the impact of acquisition costs and margin compression.
Third Quarter Performance
In Q3 2025, UAC generated N49.2 billion in revenue, slightly below the N49.9 billion recorded in Q3 2024. While Paints (+27%), Packaged Food and Beverages (+25%), and Quick Service Restaurants (+19%) posted robust growth, this was offset by a 25% decline in the Animal Feeds business due to lower commodity prices and market volatility. The UAC Nigeria Q3 2025 results reflect these dynamics, providing insights into the company’s quarterly performance.
Operating profit for the quarter fell sharply to N824 million from N5.6 billion in the prior year, as acquisition-related expenses and inventory write-downs impacted earnings. UAC recorded a loss before tax of N703 million, compared to a N5.9 billion profit in Q3 2024. Excluding one-off items, underlying profit before tax stood at N1.6 billion, down 69% year-on-year.
Commenting on the results, Group Managing Director, Fola Aiyesimoju, stated: “Our third-quarter results reflect a mix of acquisition-related costs, higher finance charges, and the underperformance of our Animal Feeds business, which offset the strong performance in other segments. The acquisition of C.H.I. Limited marks a strategic step for UAC, giving us access to leading brands in high-growth consumer categories.”