UACN Gains 61% on Simultaneous Acquisition, Earnings Update
UAC of Nigeria (UACN) Plc market value soared by 61% as the consumer goods shares caught investors’ attention over five days in the equities market following updates on earnings and its acquisition deal with Coca-Cola.
Nigerian Exchange (NGX) trading data revealed that Ticker: UACN reached an all-time high on Friday, settling at N88.3 when 3.527 million units valued at N307.830 million were traded.
The consumer goods linked share rallied all week as investors’ sentiment on the group’s earnings outlook and dividend payment expectation improved.
The consumer goods conglomerate acquisition notice, and earnings bank fuelled investors’ sentiment, which pushed its stock market price upward from N54.95.
In the second quarter of 2025, UACN earnings performance improved sharply, reflecting a positive outlook in the consumer goods sectors.
Revenue in Q2 2025 increased 27% to N54.4 billion due to volume growth in paints segment, as well as price adjustments across all businesses, the company said.
In the same period, UACN reported gross profit increased by 46% to N14 billion and gross profit margin expanded 321 basis points to 26%
It explained that the improvement in gross profit was supported by the proactive pricing approach adopted across the Group, and production efficiency.
Cost optimisation initiatives launched in 2024, and relative stability of the Naira, contributed to a slower rate of input cost escalation despite inflationary pressures, UACN disclosed.
Operating profit settled at N5.8 billion in Q2 2025 from N3.3 billion in the comparable period in 2024. The improvement in profitability is attributable to gross profit expansion which more than offset rising operating costs.
The group’s operating expense totalling N8.9 billion in the period, 30% higher compared to Q2 2024, driven by inflationary pressures.
UACN said the most significant increases were personnel, electricity & power, distribution, marketing & promotions and travelling costs driven by cost-of-living adjustments for employees, higher electricity tariffs and diesel prices, marketing activities, and increased transportation costs.
The Group recorded a modest increase in operating expenses to sales ratio of 37bps to 16.4% in Q2 2025 from 16.0% in Q2 2024.
Its net finance cost surged to N1.5 billion in Q2 2025, compared to a net finance income of N2.7 billion in Q2 2024. The shift reflects higher borrowing costs on short-term borrowing to support working capital in the Edibles and Feed segment.
In addition, management disclosed that the non-recurrence of N3.5 billion FX revaluation gain recorded in the prior period impacts year-on-year comparison.
Share of profit from associate companies of N1.8 billion compared to N18 million share of loss in Q2 2024, due to improved profitability of UPDC PLC and supported by gains from disposal of non-core properties at MDS Logistics.
Profit before tax was N6.1 billion, compared to N5.9 billion in Q2 2024. Excluding the exceptional items of N3.5 billion treasury gains in Q2 2024, Q2 2025 underlying pretax profit of N6.1 billion was 146% higher than underlying Q2 2024 profit of N2.5 billion.
Profit for the period was N4.0 billion compared to N3.6 billion profit in Q2 2024, the company said in its notice. Hence, earnings per share closed at 132 Kobo in Q2 2025 compared to 119 Kobo per share recorded in Q2 2024.
In an official statement, UACN announced that it has entered into an agreement to acquire Chivita|Hollandia, leading food and beverage player in Nigeria, with a portfolio across value-added dairy products, juices, nectars, still drinks, and snacks.
The Hollandia brand is the market leader in evaporated milk and drinking yoghurt, while the Chivita brand is the market leader in fruit juice. The deal seeks to deepen UACN footprint in the market.
UACN however said the deal is subject to regulatory approval, marks a strategic milestone in its growth agenda, expanding its presence in Nigeria’s fast-moving consumer goods sector.
When compared with first half earnings results for 2024, and 2024 performance is not as impressive. Half year results showed pretax profit went down by 25.8% to N11.100 billion from N14.950 billion.
Net income of N7.359 billion was about 23% year on year below N9.541 billion posted in H1-2024. UACN has potential to recover from earnings downturn if the acquisition provides strong earnings synergy. #UACN Gains 61% on Simultaneous Acquisition, Earnings Update#
