UAC of Nigeria PLC has announced a noteworthy gross profit of N9.1 billion for the first quarter ending on March 31, 2024, showcasing an exceptional year-on-year (YoY) surge.
According to the company’s unaudited consolidated financial statements for Q1 2024, the company achieved a revenue of N40.6 billion, marking a robust 65 per cent rise from the previous year.
The company’s performance signals sustained growth from the 2023 fiscal year. Its unaudited financial statement, when compared with its Q1 2023 report, reveals a 177 per cent increase in gross profit and a gross margin expansion to 22.4 per cent. The key drivers of this performance are its Animal Feeds and Other Edibles, Paints, and Packaged Food and Beverages segments, which grew by 30 per cent, 114 per cent and 125 per cent respectively.
The animal feeds and other edibles segment experienced enhanced performance due to cost-saving measures aimed at reducing conversion and operating expenses. In Q1 2024, the segment saw a notable increase in profit before tax, rising from the previous year’s Q1 loss of N1.3 billion to a profit of N462 million.
Similarly, within the packaged food and beverages segment, results were driven by improved topline performance and expanded margins, leading to a profit before tax of N2.2 billion compared to a loss of N6 million in Q1 2023.
The paints segment also demonstrated significant growth, achieving a profit before tax of N1.9 billion in the quarter, marking a 230 per cent increase over its Q1 2023 performance.
Commenting on the company’s Q1 performance, Group Managing Director, UAC, Folasope Aiyesimoju, stated: “The results we have delivered in the first quarter of this year are a testament to the successful implementation of our strategy. The three key pillars of this strategy are, having excellent leaders for the various businesses in the group, running companies that own some of Nigeria’s strongest brands and widest distribution network, as well as increasing investment in processes and technology.
“Other strategic initiatives which contributed greatly to the company’s performance were steps taken to ensure production at the lowest possible cost to deliver value to consumers, optimising energy consumed per unit of production and increased effectiveness in the distribution of goods and services. Looking ahead, we remain committed to investing in these drivers that position us for sustainable growth.”
The company says it remains steadfast in its pursuit of enhanced performance and profitability across its subsidiaries, capitalising on its robust financial standing and strategic endeavours. The company’s resilience and strategic direction showcase its ability to adapt to changing market conditions. The organisation remains committed to delivering value to stakeholders and fostering sustainable growth across its varied business units.
