UAC's pre-tax profit jumps 262.5% to N37.69bn as revenue triples

UAC of Nigeria Plc reported a pre-tax profit of N37.69 billion for the nine months ended September 2026, up 262.5% from N10.40 billion in the same period of 2025. The unaudited results announced on October 30, 2026, show revenue rising 227.7% to N523.00 billion from N159.58 billion, helped mainly by the consolidation of C.H.I. Limited.

For the third quarter, pre-tax profit was N3.25 billion, against a pre-tax loss of N703 million in Q3 2025. Q3 revenue rose 221.4% to N158.03 billion from N49.17 billion.

Packaged food drives the top line

Packaged Food and Beverages revenue hit N436.20 billion, up 666.1% from N56.94 billion, and accounted for about 83.4% of group turnover. The jump reflected the consolidation of C.H.I. Limited, acquired in October 2025, and growth at UAC Foods Limited. Paints revenue rose 11.3% to N33.69 billion from N30.27 billion, about 6.4% of total revenue. Management linked Q3 paints growth to a 21% rise in sales volumes, supported by the decorative paint range and the August 2026 relaunch of Sandtex Select. Edibles and Feed revenue fell 27.4% to N51.30 billion from N70.64 billion. Quick Service Restaurants revenue slipped 3.4% to N1.86 billion from N1.92 billion, although Q3 revenue rose 3.6%.

Margins improve but finance costs bite

Gross profit rose 262.1% to N142.55 billion from N39.37 billion, while cost of sales climbed to N380.45 billion from N120.21 billion. Gross margin improved to 27.3% from 24.7%. Operating expenses increased to N86.54 billion from N27.98 billion, including selling and distribution costs of N50.78 billion and administrative expenses of N35.75 billion. Operating expenses fell to 16.5% of revenue from 17.5%. EBIT rose 343.7% to N59.54 billion from N13.42 billion, with operating margin at 11.4% from 8.4%. Net finance costs rose to N23.94 billion from N5.74 billion after increased borrowings for the C.H.I. acquisition. Profit after tax rose 307.1% to N21.91 billion from N5.38 billion. Earnings per share rose to 722 kobo from 179 kobo.

Cash, debt and balance sheet

Net cash from operating activities reached N113.16 billion from N27.17 billion. Free cash flow was N98.44 billion, supported by higher operating profit and a N33.4 billion working capital release. Cash and cash equivalents fell 38.0% to N31.54 billion from N50.91 billion as of December 31, 2025. Total assets fell 13.4% to N516.89 billion from N597.06 billion. Inventories dropped to N153.33 billion from N214.53 billion, while current trade and other receivables fell to N18.78 billion from N25.67 billion. Total liabilities declined 15.4% to N446.04 billion from N527.29 billion. Shareholders' funds rose 1.5% to N70.85 billion from N69.77 billion. Total borrowings fell 23.8% to N262.63 billion from N344.81 billion, made up of N102.97 billion current debt and N159.66 billion non-current debt. Repayments were N235.54 billion against new borrowing proceeds of N173.22 billion, with an exchange gain of N11.28 billion and N7.93 billion reclassified to liabilities held for sale.

Group Managing Director Fola Aiyesimoju attributed the performance to the Packaged Food and Beverages and Paints businesses. He also cited stronger cash generation from working capital release and reaffirmed the group's focus on completing announced divestments and reducing debt.

In separate updates, Honeywell Flour Mills reported H1-2027 pre-tax profit of N31.40 billion, up 1,115%, as revenue rose 41%. MTN Nigeria's 9M pre-tax profit rose 59.4% to N1.80 trillion as revenue hit N4.61 trillion. Mutual Benefits recorded N13.89 billion pre-tax profit as insurance revenue reached N65.16 billion.