UAC of Nigeria Posts N5.9 Billion Profit in Q1
UAC of Nigeria Plc posted a N5.9 billion net profit in the first quarter of 2024, reversing its loss position in the comparable period, according to the company’s Q1 unaudited financial statement.
The consumer goods company’s earnings growth was driven by the positive impacts of exchange rate fluctuation in the period. Details from the consumer goods consumer goods financials showed a steep increase in top-line performance.
In its 2024 unaudited financial results, UAC of Nigeria Plc’s revenue increased by about 65% year on year to N40.56 billion from N24.60 billion in Q1 2023.
Furthermore, the company recorded a 47.4% rise in cost of sales, owing to increases in inventories, personnel expenses, and electricity and power.
Operating profit increased to N3.4 billion from a negative balance of N700.3 million in the previous year, according to details from its unaudited report for the period.
According to management, this development is due to increased sales resulting from a combination of volume growth and price increases, as well as improvements in production efficiency and cost-cutting initiatives conducted in the Animal Feeds division.
The company saw a net finance gain of N5.1 billion as finance income increased significantly by 15.1x due to a foreign exchange gain of N5.9 billion, which masked off the 98.1% increase in interest on loans.
UACN’s bottom line was also strengthened by N493 million share of profit from its associates in Q1 2024, compared with a loss of N5 million in Q1 2023.
Overall, profit before tax closed at N9.0 billion, according to the results, compared with N1.2 billion in pretax losses in Q1-2023.
The company’s net profit after tax settled at N5.9 billion as deferred tax of N1.7 billion was brought forward, while income tax expense increased by 540.0%. Translate PIA to Tangible Benefits to Nigerians, Wike Tells Lawmakers
