UAC of Nigeria PLC delivered an outstanding financial performance in 2024, recording a 109.3% increase in pre-tax profit to N25.8 billion, compared to N12.3 billion in the previous year.
The company also saw a 77.86% jump in fourth-quarter pre-tax earnings, rising from N2.7 billion in Q4 2023 to N4.8 billion in Q4 2024. Full-year revenue surged 63.96% year-over-year, reaching N197.6 billion, up from N120.5 billion in 2023.
Revenue Breakdown and Key Drivers
The Edibles & Feed division contributed 50.95% of total revenue, generating N100.8 billion, while Packaged Food & Beverages accounted for 29.14% with N57.6 billion.
The Paints segment brought in N36.3 billion (18.38% of total revenue), while Quick Service Restaurants and Other Categories contributed N2.5 billion and N221 million, respectively.
Financial Performance Overview
Key Metrics
- Revenue: N197.6 billion (+63.96% YoY)
- Cost of Sales: N151.3 billion (+52.52% YoY)
- Gross Profit: N46.2 billion (+117.16% YoY)
- Other Operating Income: N2.6 billion (-70.09% YoY)
- Selling & Distribution Expenses: N11.4 billion (+30.26% YoY)
- Administrative Expenses: N18.8 billion (+64.41% YoY)
- Operating Profit: N18.6 billion (+105.02% YoY)
- Finance Income: N12.9 billion (+117.48% YoY)
- Finance Cost: N6.8 billion (+93.49% YoY)
- Pre-Tax Profit: N25.8 billion (+109.30% YoY)
- Post-Tax Profit: N16.9 billion (+90.43% YoY)
Cost Structure and Profitability
Despite a 52.52% increase in the cost of sales (rising from N99.2 billion to N151.3 billion), UAC achieved a 117.16% growth in gross profit, reaching N46.2 billion in 2024.
However, other operating income fell significantly from N8.8 billion to N2.6 billion, reflecting a 70.09% decline.
Expenses also increased, with selling & distribution costs up 30.26% to N11.4 billion and administrative costs rising 64.41% to N18.8 billion.
Finance and Exchange Gains
Finance income soared 117.48% to N12.9 billion, fueled by N9.3 billion in exchange gains and N3.5 billion from loans, bonds, and short-term deposits.
However, finance costs nearly doubled, rising 93.49% YoY from N3.5 billion to N6.8 billion due to increased borrowing expenses.
Asset Growth and Financial Strength
UAC’s total assets rose substantially to N156.8 billion, up from N112.3 billion in 2023.
- Non-current assets increased from N48.3 billion to N52.2 billion, with Property, Plant & Equipment contributing N27.8 billion.
- Current assets expanded by 63.9%, reaching N104 billion, primarily driven by inventory (N54.3 billion) and cash reserves (N40.3 billion).
Despite rising costs and operating challenges, UAC of Nigeria’s 2024 performance reflects strong revenue growth and profitability. With a robust asset base and increased financial income, the company is positioned for continued expansion in key sectors, particularly Edibles & Feed and Packaged Food & Beverages.
