UAC of Nigeria Plc has announced that its revenue rose to N110.4 billion in the first half of 2025, marking a 33 per cent increase compared to the same period in 2024. The growth was driven by strong consumer demand and a solid performance across the company’s core business segments, despite a tough economic climate.
According to the unaudited half-year results released by the company, gross profit increased by 51 per cent due to strategic pricing and better cost control, which expanded gross margins by over 300 basis points. The company said this shows improved operational efficiency as the economy gradually stabilises.
However, UAC’s profit after tax dropped by 23 per cent, largely because the same period in 2024 included a one-time foreign exchange gain of N9.4 billion. Without this non-recurring item, UAC said its underlying profit before tax would have risen by a remarkable 91 per cent, showing a strong underlying performance.
Segment analysis revealed that the packaged food and beverages division was the top performer with a 43 per cent revenue increase. The animal feeds segment followed with a 24 per cent growth, while the paints segment grew by 29 per cent. This was supported by the opening of 51 new retail outlets across the country, which helped increase customer access to UAC products.
However, the Quick Service Restaurants (QSR) segment recorded a revenue decline. The company attributed this drop to the strategic closure of underperforming outlets and the impact of inflation on consumer spending. Rising food prices and reduced disposable income have affected fast food sales nationwide, contributing to the weaker performance in this segment.
Group Managing Director of UAC, Fola Aiyesimoju, expressed confidence in the company’s long-term prospects. He noted that the Group remains committed to disciplined execution, cost control, and sustainable growth.
“We are focused on creating long-term value for our shareholders while adapting to Nigeria’s evolving economic landscape. Our growth in key segments and margin improvement reflect our resilience and execution strength,” Aiyesimoju said.
The company also noted that it will continue to adapt to changing market conditions, especially around consumer behaviour, inflation, and cost pressures. It said investments in technology, operational upgrades, and retail expansion will remain a top priority for the rest of 2025.
Despite the fall in reported net earnings, analysts say UAC’s performance is encouraging. They point to strong revenue growth, higher gross margins, and significant improvement in core operational profit as signs that the company is on a recovery path. The drop in headline profit due to a one-off gain in 2024 is not seen as a reflection of weakening fundamentals.
UAC of Nigeria Plc, founded over 140 years ago, operates through several well-known subsidiaries including Grand Cereals, UAC Foods, Livestock Feeds, CAP Plc (makers of Dulux paint), and UAC Restaurants. The Group is known for its deep market penetration and legacy brands.
As the second half of 2025 progresses, UAC is expected to continue focusing on expanding its retail presence, improving production efficiency, and managing cost headwinds. Stakeholders will be watching closely to see if the company can maintain its positive momentum and turn operational gains into stronger bottom-line results.
