UAC Nigeria Plc has achieved a remarkable turnaround in its financial performance for the fiscal year 2023, posting a pre-tax profit of N12.34 billion.
This marks a significant improvement from the N4.37 billion loss incurred in the previous year. Notably, the pre-tax profit for 2023 is the highest the group has recorded since 2014 when it achieved N14.1 billion.
The group’s audited financial statement reveals that its revenue surged to N120.5 billion in FY 2023, indicating a notable 10% increase compared to the N109.3 billion reported in 2022. A substantial portion of the group’s revenue, amounting to N64.2 billion, was generated from its animal feeds business.
Key highlights of UAC Nigeria’s financial performance for FY 2023 compared to FY 2022 include:
– Revenue: N120.53 billion, up by 10.3% year-on-year (YoY)
– Operating Profit: N9.09 billion, marking a significant increase of 481.4% YoY
– Other operating income: N8.82 billion, skyrocketing by 1087%
– Net finance income: N2.39 billion, rising by 214.5% YoY
– Profit before tax: N12.34 billion, showing a substantial growth of 382.7% YoY
– Profit for the year: N8.91 billion, up by 322.7% YoY
– Cash and cash equivalents: N25.27 billion, indicating a robust growth of 56.0% YoY
– Total assets: N112.35 billion, marking a significant increase of 19.7% YoY
– Earnings per share: N3.14, reflecting a remarkable surge of 393.5% YoY
As of March 28, the share price of UAC Nigeria stood at N13.75, registering a year-to-date appreciation of 7%. The group’s total assets witnessed a substantial growth of 19.7% in 2023, while its shareholders’ fund increased by 17.4% to reach N53.2 billion.
The group’s return to profitability in 2023 can be attributed to its substantial “other operating income” of N8.82 billion, which mainly comprised foreign exchange gains or losses.
UAC Nigeria operates across four segments, including animal feeds and other edibles, paints, packaged food & beverages, and quick service restaurants.
Additionally, it manages five subsidiaries, namely Grand Cereals Limited, Chemical & Allied Products Plc, MDS Logistics Limited, UAC Foods Limited, and Livestock Feeds Plc.
In 2023, the animal feeds & other edibles segment emerged as the top revenue generator, with a revenue of N64.17 billion, followed by the paints segment with N23.89 billion.
The packaged foods and beverages sector recorded revenue of N28.55 billion, while the quick service restaurant segment reported revenue of N3.72 billion.
