UAC shares hit 52-week high on Chivita acquisition

The shares of UAC of Nigeria Plc were on demand on Wednesday following the company’s disclosure that it has entered into an agreement to acquire Chivita|Hollandia (CHI Limited) from The Coca-Cola Company.

Investors defied UACN half-year earnings dropped by 23 percent on cost pressure, rallying by 9.94 percent to N73, its 52-week high as against 52-week low of N16.15.

UAC of Nigeria Plc recorded a 22.9 percent decline in its after-tax profit to N7.36 billion in the first half of 2025, down from N9.54 billion in the same period of 2024, as higher finance costs eroded gains from operating efficiencies.

According to the company’s financial statement released on Wednesday, the Group’s revenue rose by 33 percent to N110.41 billion from N83.25 billion in H1 2024, driven by double-digit growth across all key business segments, including animal feeds, paints, and packaged foods.

Read also: UAC acquires CHI Limited from Coca-Cola

Gross profit climbed 51 percent year-on-year to N28.26 billion, supported by a better product mix and cost management initiatives.

Though for an undisclosed amount, UACN has acquired Chivita|Hollandia (CHI Limited), a 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.

Fola Aiyesimoju, Group Managing Director of UAC, said: “As a company with a strong presence in Africa, we are deeply committed to the continent’s growth. We are pleased to announce the acquisition of Chivita|Hollandia (CHI Limited), a leading dairy and juice business in the region.

This acquisition presents significant potential to build on Chivita|Hollandia’s (CHI Limited’s) legacy of excellence and innovation. I would like to thank the management and staff of Chivita|Hollandia (CHI Limited) and look forward to working with the team to support the next phase of growth.”

Operating profit rose sharply to N12.59 billion from N6.66 billion in the prior period, an 89 percent increase, highlighting improved margins and scaled operations. Operating income was also bolstered by gains from asset disposals and other non-core income streams, including a N556.7 million profit from asset sales and N676 million in other income.

Eelco Weber, Managing Director of Chivita|Hollandia (CHI Limited), said the business has made significant progress over the past few years, with the Chivita and Hollandia brands becoming clear leaders in their categories. “I would like to thank our over 5,000 employees for their hard work and dedication in bringing our business forward and earning us recognition as a Goldrated Great Place to Work,” Weber said.

The management team, including Weber, are confident in the company’s growth prospects.

“We see a bright future for Chivita|Hollandia (CHI Limited),” Weber said. “With the strength of our team, coupled with the dedication of UAC, there will be exciting opportunities for further growth.”

Read also: UAC’s half-year earnings shrink by 23% on cost pressure

This transaction, which is subject to regulatory approval, marks a strategic milestone in UAC’s growth agenda, expanding its presence in Nigeria’s fast-moving consumer goods sector. It supports The Coca-Cola Company’s strategy to operate a flexible and asset-light model and focus on brands that have the greatest potential to scale.

The Coca-Cola system recently announced it will invest $1 billion in Nigeria over five years and remains committed to these investments, provided a predictable and enabling environment is in place. This investment underscores the importance of Africa as a long-term growth opportunity for the Coca-Cola system.