UAC of Nigeria Plc has reaffirmed its long-term growth strategy following the release of its H1 2025 financial results.

The group reported strong topline growth, with revenue rising 33 per cent year-over-year to N110.4 billion in H1 2025, reflecting robust consumer demand and sustained commercial momentum across key operating segments.
Gross profit also increased significantly by 51 per cent, supported by effective pricing strategies and enhanced cost management, leading to margin expansion.

The improvements translated to a 91 per cent surge in profit compared to the same period last year, underscoring the company’s operational leverage and disciplined execution.

While profit after tax (PAT) indicated a 22.9 per cent year-on-year decline, UAC clarified during the investor call that the drop was not the result of a downturn in operational performance but rather the absence of a one-off 9.4 billion FX gain recorded in H1, 2024.

Excluding this non-recurring item, the group’s underlying profit before tax (PBT) grew by 91 per cent, offering a clearer view of the company’s earnings quality and business fundamentals.

Commenting on their performance and outlook, Group Managing Director, Fola Aiyesimoju, stated: “UAC maintained strong business momentum, driven by gross margin expansion, operational efficiency and improved contributions from associate companies. Looking ahead, we will continue to execute our growth and value creation strategy with discipline and a long-term focus.”

Segment-level performance reflected strong growth across key business units. The packaged food and beverages segment grew by 43 per cent year-on-year, led by strong momentum in snacks and dairy, supported by wider distribution. The Animal Feeds segment posted a 24 per cent increase in revenue, while the paints segment expanded by 29 per cent, boosted by retail network growth, including the addition of 51 new points of presence nationwide.

The Quick Service Restaurants (QSR) segment recorded a decline in revenue during the period, driven by the rationalisation of underperforming outlets and the impact of inflation on consumer discretionary spending.

The group said it remains confident in the long-term growth potential of the QSR sector, with ongoing efforts to optimise operations and enhance customer experience.

According to the GMD, the acquisition of CHI Limited is a deliberate expansion in Nigeria’s fast-growing food and beverage sector; representing not just an expansion of their portfolio, but a long-term investment in high-potential categories where UAC anticipates sustained consumer demand, route-to-market synergies and margin-accretive opportunities.

Speaking on the significance of the acquisition and expressing appreciation for the trust placed in them, Aiyesimoju acknowledged CHI’s management and staff, noting that the CHI brands are a perfect complement to their existing portfolio and create opportunities to expand their reach and impact in the market.

“With a strengthened consumer platform, experienced leadership team and clear roadmap, we are well positioned to navigate near-term headwinds while delivering long-term value across our diverse portfolio,” Aiyesimoju said.