UAC of Nigeria Half-Year Profit Triples to ₦20 Billion as C.H.I. Acquisition Drives Earnings

UAC of Nigeria Plc (UACN) reported a significant expansion in top-line revenue and bottom-line earnings for the first half of 2026, as the full consolidation of beverage and dairy maker C.H.I. Limited transformed the scale of the country’s oldest conglomerate.

Group revenue surged 230.6% year-on-year to ₦365 billion, propelled by volume expansion and the integration of C.H.I.’s portfolio—including the Chivita, Hollandia, and Capri-Sun brands—into UACN’s packaged food and beverages division. Basic earnings per share (EPS) expanded to ₦6.58 from ₦2.38 in the prior-year period.

The packaged food and beverages business posted a 671.6% jump in revenue, emerging as the dominant growth engine by accounting for 84.2% of total group turnover. The segment helped offset revenue contraction in agricultural feeds and quick-service restaurants, lifting group gross profit margins to 28.6% from 25.6% in H1 2025.

Segment Divergence and Operational Overhead

Operating profit quadrupled to ₦48.9 billion despite a 235.8% surge in operating expenses. Selling and distribution costs expanded by 385.2% year-on-year, reflecting direct brand-building investments and additional logistics overheads following the acquisition.

Performance across UACN’s operating units remained highly divided:

• Packaged Food & Beverages: Revenue expanded more than sevenfold, generating ₦33.6 billion in pre-tax profit.

• Paints (CAP Plc): Revenue grew 11.5% year-on-year, supported by volume gains and selective price increases, including new mid-tier product launches.

• Edibles & Feeds: Segment revenue declined 30.8% year-on-year due to lower finished-goods commodity prices and weaker sales volumes, remaining in the red.

• Quick Service Restaurants (QSR): Turnover contracted 7.5% as management closed underperforming outlets under the Mr Bigg’s and Debonairs Pizza brands to curb operating losses.

Finance Costs and Liquidity Position

Below the operating line, net finance costs escalated 4.34x year-on-year. Finance expenses rose by 334.2%, driven by higher debt service obligations associated with the term facilities used to fund the C.H.I. transaction. This was partially offset by finance income supported by a ₦7.8 billion foreign-exchange revaluation gain.

Pre-tax profit closed at ₦34.4 billion, up 210.3% year-on-year. After accounting for an effective tax rate of 41.9%, net profit settled at ₦20.0 billion compared to ₦7.4 billion in H1 2025.

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