UACN, one of Nigeria’s largest conglomerates, has rebounded to profitability in nine months of 2023, posting a profit of N6.7 billion. This is a significant improvement from the loss of N2.01 billion that the company recorded in the same period of last year.
“In Q3 2023, our financial performance was positively impacted by one-off gains from real estate divestments which are non-recurring. Operating conditions remained difficult with rising inflation and consumer income under pressure,” Fola Aiyesimoju, group managing director of UAC of Nigeria said in a statement.
“The outlook remains challenging; however, we anticipate improvement driven by the various ongoing reforms,” he added.
Revenue surged to N81.53 billion in 9M’2023 from N77.80 billion in the same period of 2022.
The group segment that contributed the most to its total revenue is animal feeds and other edibles which stood at N43.88 billion, packaged food & beverages (N19.44 billion), paints (N15.26 billion), quick service restaurants (N2.78 billion), and others (N167.96 million).
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UAC of Nigeria’s cost of sales increased to N67.39 billion in 9M’2023 from N65.49 billion in the same period of 2022.
UAC of Nigeria said in a statement that it completed the merger of UAC Foods Limited and Spring Waters Nigeria Limited (SWAN) in August 2023 in line with the strategy to simplify UAC’s group structure. UAC’s shareholding in the enlarged UAC Foods is 99.42 percent.
The firm’s selling and distribution expenses increased to N6.54 billion from N6.2 billion during the period.
Administrative expenses grew to N7.65 billion in 9M’2023 from N6.48 billion in the same period of 2022.
Impairment loss on assets dropped to N1.34 billion in 9M’2023 from N1.42 billion in the similar period of 2022.
Profit on sale of property, plant, and equipment grew to N7.63 billion in 9M’2023 from N8.78 million in the same period of 2022.
Profit on sale of investment property increased to N307.78 million in 9M’2023 from N386.4 million in the same period of 2022.
The sale of scrap used bags and by-products amounted to N246.4 million in 9M’2023 from N101.24 million in the same period of 2022.
VAT on commercial service fees declined to N43.15 million in 9M’2023 from N64.77 million in the same period of 2022.
Read also: Lower sales, high expenses push UACN to first loss in six years
Cash and cash equivalents at the end of the period rose to N22.71 billion from N11.24 billion during the period.
Movement in UAC of Nigeria’s cash and cash equivalents shows that net cash flows generated from operating activities amounted to N4.28 billion in 9M’2023 from N3.19 billion in the same period of 2022.
Net cash flows generated from investing activities stood at a positive of N5.44 billion in 9M’2023 from a negative cash flow of N4.34 billion in the similar period of 2022.
Net cash flows used in financing activities stood at a negative of N3.21 billion in 9M’2023 from a positive of N974.35 million in the same period of 2022.
Diluted earnings per share from N246 in the nine months of 2023 from a loss per share of N47 in the similar period of 2022.
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