UAC of Nigeria Plc has given investors and customers a clear message: the business is growing and getting healthier underneath the headline numbers. For the six months to June 30, 2025 the group reported revenue of N110.4 billion, up 33 percent year on year, driven by stronger consumer demand across its core segments and disciplined commercial execution.
This topline growth did not come alone. Gross profit rose by 51 percent, lifting gross margins by more than 300 basis points and showing that pricing and cost control measures are working. Those margin gains are the kind of progress that turns temporary recovery into sustainable performance.
A mixed headline, explained clearly
Profit after tax fell by about 23 per cent compared with the same period in 2024, a number that looks worrying at first glance. UAC’s leadership was quick to explain the reason. Last year’s H1 results included a one-off foreign exchange gain of N9.4 billion. Remove that non-recurring per cent item and the underlying picture is much brighter: underlying profit before tax rose sharply, by a higher per cent, signalling that the operating business strengthened significantly. Investors should read the adjusted numbers to understand the real momentum.
What management says
Group Managing Director Fola Aiyesimoju framed the results as proof that strategy and discipline are paying off. He pointed to margin improvement, tighter operations, and better contributions from associate companies as the primary drivers of performance. He also highlighted the CHI Limited acquisition as a strategic move that will deepen UAC’s position in Nigeria’s food and beverage market and create important synergies for future growth.
Segment stories that matter
The recovery is not uniform, but a few segments stand out.
- Packaged food and beverages led the charge with a 43 percent year on year revenue increase. Strong demand for snacks and dairy, combined with wider distribution, underpinned that performance.
- The animal feeds business grew by 24 percent, benefiting from higher volumes and better pricing.
- Paints recorded a 29 percent revenue increase, helped by an expanded retail footprint that included 51 new points of presence nationwide. This shows how distribution and retail investment can unlock quick returns.
- Quick service restaurants experienced a revenue decline as the company rationalised underperforming outlets and as inflation affected discretionary consumer spending. Management emphasises that QSR remains strategically important and is being nurtured for long-term recovery.
Why the numbers deserve attention
Three reasons make these H1 results notable.
- The combination of revenue growth and wide margin expansion shows the company is not only selling more but also extracting more value from each sale. That is a healthier kind of growth.
- The underlying profit gains, after removing a large one-off FX effect from the prior year, suggest real operational improvement rather than an accounting illusion.
- Strategic moves such as the acquisition of CHI Limited signal that UAC is not sitting on its gains but reinvesting to capture more of the food and beverage value chain. That could amplify future revenue and margin upside.
Risks and what to watch next
The bright spots are real, but the story is not risk free. Rising finance costs, foreign exchange volatility, and a still fragile consumer environment mean outcomes will depend on disciplined execution. Key items for shareholders and analysts to monitor in the coming quarters include cash flow conversion, the successful integration of CHI Limited, and whether the QSR rationalisation leads to a leaner, more profitable footprint rather than a permanent shrinkage of future revenue potential.
A practical takeaway
For customers and suppliers the message is reassuring. UAC appears to be focused on getting the basics right: sell more, protect margins, and invest where returns are clearest. For investors the adjusted profit metrics and the CHI deal are the two levers that could drive a re-rating if management continues to translate improved margins into stronger free cash flow.
H1 2025 is a statement of intent from UAC of Nigeria. On the surface there is a mix of good and less good numbers. Look beneath the surface though and you find a healthier operating engine, a stronger margin profile, and strategic moves that could pay off over time. If the group can sustain operational discipline and manage macro risks, the rest of 2025 could be about turning promising momentum into lasting gains.
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