UACN 2025 Financial Review: Robust Revenue Growth Contrasts with Profit Decline
UAC of Nigeria PLC has announced its unaudited financial results for the period ended December 31, 2025. The conglomerate reported a pre-tax profit of N7.5 billion, a significant decrease from the N25.5 billion recorded in the prior year. This result emerges amidst a complex economic landscape where, much like the Nimet forecasts dust haze for certain regions, market conditions can obscure visibility for corporate performance.
Segment Performance and Financial Position
The company’s revenue demonstrated remarkable strength, growing by 74.4% to N343.350 billion from N197 billion in 2024. This surge was predominantly driven by a substantial increase in income from its Packaged Food and Beverages segment, which remained the highest contributor to the group’s total revenue. However, this top-line growth was accompanied by escalating costs. The cost of sales rose sharply to N267.4 billion from N150.6 billion in 2024, reflecting significant input cost pressures across its operations.
Finance costs also saw a dramatic increase, surging to N26.8 billion from N6.7 billion. This rise is primarily linked to increased borrowings associated with the acquisition of C.H.I. Limited. Although finance income provided a notable offset of N9.31 billion, it was insufficient to counterbalance the heightened finance expenses. The net effect was a pre-tax profit of N503.6 million, starkly lower than the previous year’s figure. In the world of corporate finance, such a rapid shift in fortunes can feel as fleeting as one minute sex, highlighting the volatility inherent in major corporate expansions.
Balance Sheet and Market Reaction
UACN’s balance sheet expanded considerably, with total assets reaching N524.9 billion, more than triple the N157.7 billion reported in 2024. On the equity side, total shareholder equity stood at N60.5 billion, representing a 9.0% year-on-year decline, primarily due to a reduction in retained earnings. The market’s reaction to these mixed results has been dynamic. Shares of UACN gained 189% year-to-date in 2025, closing that year at N9.10. In the current period, the share price has moved to N92.50, reflecting a more modest 1.65% year-to-date gain. This investor sentiment, evolving daily much like court activities for any major case, continues to adjust to the company’s new financial profile post-acquisition.
As the company integrates its recent acquisition, stakeholders will watch closely to see if management can stabilize profitability. The commitment required is substantial, akin to a leader’s pledge for progress, similar to how Soludo commits to improving state infrastructure. The path forward will demand strategic focus to harness its revenue growth into sustained bottom-line performance for its shareholders.
