UAC Nigeria achieved a remarkable 373% growth
UAC Nigeria achieved a remarkable 373% growth in pre-tax profit for the first half of 2024, posting N15 billion compared to N3.16 billion in H1 2023. Their revenue also saw a significant increase, reaching N83.3 billion, a 57.5% rise from N52.9 billion in H1 2023.
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UAC’s Key Financial Highlights (H1 2024 vs H1 2023):
– **Revenue**: N83.3 billion, +57% YoY
– **Cost of sales**: N64.5 billion, +46% YoY
– **Gross profit**: N18.7 billion, +117% YoY
– **Selling and distribution expenses**: N5.1 billion, +23% YoY
– **Operating profit**: N6.7 billion, +18994% YoY
– **Net finance income**: N7.8 billion, +188% YoY
– **Profit before tax**: N15 billion, +373% YoY
– **Profit for the period**: N9.5 billion, +677% YoY
– **Earnings per share**: N3.04, +474% YoY
– **Total assets**: N124.8 billion, +11% YoY
– **Net cash flows from operating activities**: N8.4 billion, +228% YoY
– **Cash and cash equivalents at the end of the period**: N32.8 billion, +119% YoY
UAC ‘s Revenue Breakdown:
– **Edible oils and livestock feeds** (Livestock Feeds Plc and Grand Cereal Limited): N38.5 billion
– **UAC Foods**: N27.6 billion
– **Chemical and Allied Paints (CAP) Plc**: N15.6 billion
UAC’s Profit Breakdown:
– **UAC Foods**: N4.1 billion pre-tax profit
– **CAP Plc**: N2.67 billion pre-tax profit
Commentary:
UAC’s revenue growth outpaced its cost of sales, leading to substantial gross profit growth. The group’s net finance income, significantly boosted by exchange gains from dollar-denominated assets, also contributed to its profit growth. Despite higher tax liabilities, the company managed to maintain a strong financial performance.
