Amid recession, UACN releases positive Q3 financial report
Amid the gory economic times, UAC of Nigeria PLC has unveiled an enchanting 2016 Quarter 3 financial result.
Although, its core areas operation – construction, food/beverages and real estate activities – are slowing down, but due to pragmatic and creative management, this leading diversified conglomerate headquartered in Lagos, with operations in foods, paints, logistics and real estate, has announced an inspiring unaudited results for the nine month ended September 30, 2016. It defied all the challenges of a recessed economy to post 5 per cent Year on Year topline growth for the nine month period. UACN recorded a profit after tax of N4.3 billion, up by 42 per cent, compared to the N3.1 billion recorded in the same period last year.
Larry Ettah, UAC of Nigeria PLC Group Managing Director & CEO remarked: “Our performance in the nine months to September 2016 demonstrates the resilience of our business and the effectiveness of our strategy in a rather difficult operating environment. Markets remained soft with declining purchasing power, especially in our real estate and paint categories. Forex scarcity/rate volatility and input material shortages are leading to frequent and significant cost increases and production disruptions.
“Grand Cereals operations delivered commendable results in the quarter, despite challenges in the operating environment. Management is focused on achieving earnings stability in the remaining months of 2016.”
Ettah has every reason to be happy. The Group’s financial highlights are in the period under review are exciting. It reported a turnover of N57.7 billion, up 5 per cent (N55 billion September 2015); Gross profit of N12.5 billion, up 2 per cent (N12.2 billion September 2015); Other income of N1.8 billion, up 92 per cent (N933 million September 2015); Profit Before Tax of N6.3 billion, up 27 per cent (N4.95 billion September 2015) and Profit After Tax of N4.3 billion, up 42 per cent (N3.1 billion September 2015).
Key subsidiary performances were also thrilling. UPDC PLC, its real estate division recorded Profit Before Tax of N133 million (Loss of 110 million September 2015).
UAC Restaurants Limited recorded Profit Before Tax of N3.5 million (Loss of N80.2 million September 2015) while UAC Foods Limited (foods, ice‐cream, fruit drinks and spring water) recorded Profit Before Tax of N1 billion, up 16 per cent (N868 million September 2015).
Grand Cereals Limited (animal feed, cereal meal and edible oil) recorded Profit Before Tax of N1.75 billion, up 48 per cent (N1.18 billion September 2015) while MDS Logistics Limited (Logistics) recorded Profit Before Tax of N1.1 billion, up 42 per cent (N788 million September 2015).
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