The earnings of UAC of Nigeria Plc, a manufacturer of food products, has jumped to the highest in at least 10 years, according to its latest financial statement.
The firm’s after-tax profit surged by 691.7 percent to N9.5 billion in the first six months of 2024 from N1.2 billion in the same period of last year.
Further analysis shows that UACN’s operating profit surged to N6.7 billion from a loss of N35.2 million while its foreign exchange gain increased to N9.4 billion in H1 2024 from N3.7 billion.
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Folasope Aiyesimoju, group managing director of UAC of Nigeria, highlighted that the consumer-centric nature, strategic implementation of initiatives, and new management team are essential contributors to the improved earnings of the firm.
“An essential consideration revolves around our consumer-centric nature because, at UAC of Nigeria, our accomplishments hinge significantly on the Nigerian consumer. Therefore, as we celebrate our impressive numbers, it is imperative to acknowledge and give credit to the resilience exhibited by them,” he said.
He added that a key driver for the success lies in the effective implementation of strategic initiatives centered on fostering a workforce of excellence, cultivating strong brands, and establishing nationwide distribution channels.
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“All our business units are headed by outstanding leaders who oversee operations, and we invest substantial effort in nurturing and empowering these leaders to assemble high-performing teams. We regard this as a key differentiator, forming an integral part of our unique selling propositions,” he said.
The company also reported an increase in revenue which grew by 57.5 percent year-on-year to N83.3 billion from N52.9 billion.
A breakdown of the revenue by category showed that the company generated N83.2 billion from contracts with customers in Nigeria and N86.6 million as rental income.
Its profit before tax increased to N14.9 billion in H1 from a profit of N3.2 billion in the first half of 2023.
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Other operating income increased to N788.5 million from N435.6 million.
Finance income was up by 143.2 percent to N10.7 billion from N4.4 billion. Finance cost rose to N2.8 billion from N1.6 billion.
The firm’s selling and distribution expenses increased to N5.1 billion from N4.2 billion while administrative expenses grew to N7.7 billion from N4.9 billion.
Cost of sales, however, claimed 29.1 percent of the total revenue during the period, thereby pressuring the profitability of the manufacturing firm.
UACN’s cost of sales increased by 5.9 percent to N64.5 billion from N44.3 billion. The real estate company also recorded an increase in net finance income of N7.8 billion in the period under review from a gain of N2.7 billion recorded in the same period of 2023.
Its cash and cash equivalent during the period under review amounted to N32.8 billion, a 29.6 percent increase from N25.3 billion.
Read also: UACN sees boost in full-year earnings to N7.8bn
The basic earnings per share recorded a positive increase of N119 from N82. The total assets increased to N124.8 billion from N112.3 billion.
The total equity was N61.6 billion, down from N53.2 billion.
The UACN is a Nigerian publicly listed company based in Lagos. Its areas of operation include manufacturing, services, logistics and warehousing, agriculture, and real estate. UACN’s food operations include UAC Franchising, UAC Restaurants, and UAC Dairies.
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