BusinessDay

Nigeria’s oldest conglomerate records highest revenue in 10 years

UACN plc, Nigeria’s oldest conglomerate, logged an increase in revenue by 25.66 percent to N27.67 billion in the first quarter (Q1) of 2022, from N22.02 billion recorded in the comparable period of 2021, BusinessDay’s finding shows.

The revenue reported in the first quarter of 2022 represents the highest in 10 years.

A breakdown of the company’s revenue shows that animal feeds and other edibles contributed the highest to total revenue at 57.5 percent. Animal feeds and other edibles amounted to N15.91 billion in the first quarter of 2022, compared to paints, packaged food and beverages, and quick-service restaurant which amounted to N4.66 billion, N6.46 billion, and N591 million respectively.

Despite recording the highest revenue in Q1 2022, the company recorded a 4.48 percent decline in profit to N639 million from N669 million in the comparable period of 2021.

The decline in profit was a result of higher input costs, as the company’s cost of sales claimed 81.64 percent of its revenue.

The cost of sales during the first three months of 2022 amounted to N22.59 billion, a 25.43 percent increase from N18.01 billion recorded in the first three months of 2021.

Analysis by Businessday to gauge the profitability of the company relative to its revenue shows a profit margin of 2.31 percent.

Read also: SAHCO records N8.7bn revenue in 2021, invests N2bn in equipment

UACN reported finance costs to the tune of N1.15 billion the Q1 2022, a whopping 296.55 percent increase from N290 million reported in Q1 2021.

Administrative expenses amounted to N1.93 billion during the first quarter of 2022, a 28.67 percent increase from N1.50 billion in the first quarter of 2021.

Similarly, its selling and distribution expenses increased by 21.68 percent to N1.74 billion in March 2022 from N1.43 billion in March 2021.

The conglomerate company also saw its total asset surge to N115.45 billion, a 16.70 percent increase from N98.93 billion previously recorded in the first quarter of 2021.

The company’s net asset, which is also its total shareholders’ equity amounted to N51.48 billion in Q1 2022.

UAC of Nigeria recorded total borrowings amounting to N34.16 billion in the first quarter of 2022. Further analysis by businessday to gauge the company’s debt relative to its equity show a net debt to equity ratio of 66.36 percent.

Its cash and cash equivalent which represents the value of a company’s assets that are cash or can be converted into cash immediately declined by 14.53 percent to N12.63 billion in the first quarter of 2022 from N24.54 billion in the comparable period of 2021.

The conglomerate company’s earnings per share declined by 33.33 percent to 12 kobo in the first three months of 2022, as against 18 kobo recorded in the first three months of 2021.

UAC of Nigeria Plc is a Nigeria-based company operating in the foods and beverage, real estate, paints, and logistics sectors.

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