UAC of Nigeria has delivered an impressive performance, with a 107% increase in profit before tax to N26 billion in 2024. This remarkable growth is a testament to the company's strong sales, improved operational efficiency, and strategic price adjustments.
Key Highlights
The company's financial performance reveals several key highlights:
- Revenue Growth: UAC's revenue surged by 63% to N197 billion, driven by strong sales in key segments, including Edibles and Feed, Packaged Food and Beverages, and Paints.
- Gross Profit: The company's gross profit grew by 117% to N46 billion, with a gross margin improvement of 5.83 percentage points to 23.5%.
- Operating Profit: UAC's operating profit doubled to N19 billion, driven by volume growth, improved production efficiency, and strategic price adjustments.
- Earnings Per Share: The company's earnings per share increased to N4.97, up from N314 in 2023.
Driving Growth
UAC's strong performance can be attributed to several factors:
- Volume Growth: The company saw significant volume growth in packaged food and beverages, driving revenue and profit growth.
- Improved Efficiency: UAC's improved production efficiency and strategic price adjustments helped mitigate inflationary pressures and drive profit growth.
- Investment Yields: The company's net finance income increased, driven by higher investment yields and gains in the treasury portfolio.
Outlook
UAC's Group Managing Director, Fola Aiyesimoju, expressed confidence in the company's future prospects, stating that the company remains focused on creating shareholder value and prioritizing profitable growth, scale, and simplicity. With a strong foundation in place, UAC is well-positioned to drive continued growth and success in 2025.
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