UAC of Nigeria Plc, a diversified holding company, has recorded the highest after-tax profit in a decade, which was attributed to its initiative to pursue new markets through products offering to consumers. UACN was also able to achieve that owing to its smart risk management methods regarding interest rates and foreign exchange.
Folasope Aiyesimoju, group managing doctor of UACN, said this while commenting on the 2024 financial performance, nothing that there were improvements in profitability which was recorded across the firm’s core operating segments.
“Specific initiatives include aggressively pursuing new markets with products offering value to the consumer, a rigorous focus on pricing and margin, and careful risk management regarding interest rates and foreign exchange,” he said.
UAC of Nigeria Plc recorded its highest profit in a decade reaching N16.9 billion in 2024 from N8.84 billion in 2023 driven by sales of gala and livestock feeds.
The firm recorded this despite the economic headwinds of skyrocketing inflation which impacted input costs and operating expenses.
UAC of Nigeria recorded a 53 percent growth in input cost to N48.9 billion during the period.
The firm stated in its earnings release statement that its performance in 2024 can be attributed to the exceptional performance to volume and value growth across key operating segments, notably packaged food and beverages, feeds, and paints.
It also noted that a strong people-focused strategy and strategic investments in technology were also key.
UAC of Nigeria’s share price stands at N36 as of February 6, an improvement from N32.95 at the beginning of the year.
Read also: Sausage, feeds drive UACN’s earnings to 10-yr high
The firm braced against naira devaluation winds as it reported an improvement in foreign exchange gain to N9.4 billion in 2024 from N4.2 billion in 2023.
“Our disciplined approach to financial management was instrumental in delivering these results. We maintained a strong focus on cost optimization, working capital efficiency, and prudent risk management, which supported both top-line growth and profitability,” Funke Ijaiya-Oladipo, group finance director said while speaking about UAC of Nigeria’s financial strategy.
“As we look ahead to 2025, we remain committed to driving sustainable growth through operational excellence, strategic capital allocation, and continued focus on delivering value to our shareholders,” she said.
“This performance is further supported by the launch of the 1879 Tech Hub, named after UAC of Nigeria PLCs founding year. The initiative aims to drive digital innovation and reinforces the company’s commitment to leveraging technology for sustainable growth,” Ijaiya-Oladipo said.
Earnings per share stood at N5.15 per share in 2024 from N3.14 per share in 2023.
“In 2021, the company introduced a Long Term Incentive Plan using the value creation plan model under which eligible employees are awarded ordinary shares of the company subject to delivering exceptional shareholder value,” the firm stated.
It said the value creation plan was designed to incentivise employees to deliver exceptional returns for shareholders over five years.
“The model is aimed at ensuring that UAC attracts, retains, and motivates talented employees with the mindset of owners and to align the interests of employees and shareholders with performance measured by the management team’s ability to maximise shareholder value,” UAC of Nigeria said in a statement.
It said under the value creation plan, its employees will receive, in the form of ordinary shares in the company, a proportion of the value delivered for shareholders over five years, provided that the company delivers a minimum total shareholder return of 18 percent per annum.
“Should this return be delivered, an incentive pot equal to 10 percent of the value created will be distributed to its employees (participants),” the firm stated.
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