Revenue Soars on Expanded Portfolio
The company’s unaudited full-year results showed revenue rising by 74% to ₦343.4 billion, driven largely by the enlarged packaged foods and beverages business. The acquisition of C.H.I. Limited played a pivotal role in reshaping UAC’s revenue mix, with packaged foods emerging as the dominant contributor to the group’s sales.
Profitability Weakens Despite Improved Core Performance
Despite strong sales, headline profits failed to keep pace. While gross profit improved and operating profit edged higher, profit before tax fell by more than 70% year-on-year, and profit after tax dropped below ₦1 billion, a significant decline from 2024.
Management explained that the earnings slump was mainly due to one-off acquisition-related costs exceeding ₦21 billion, coupled with higher finance charges in a high-interest rate environment. These factors weighed heavily on the bottom line and overshadowed the company’s operational improvements.
Q4 Highlights the Impact of One-Off Costs
The disparity was most pronounced in the final quarter. Q4 revenue jumped 62% year-on-year to ₦183.8 billion, reflecting a full quarter’s contribution from the acquired business. However, the group recorded a loss after tax of ₦4.9 billion, reversing the profit reported in the same quarter of 2024. Reported operating profit also declined as transaction and integration costs were fully recognised.
Underlying Performance Suggests Resilience
When adjusted for exceptional items, the underlying performance appeared more robust. Adjusted full-year profit before tax was estimated at around ₦28.7 billion, and underlying Q4 operating performance showed strong growth year-on-year. This supports management’s assertion that the profit slump is largely non-recurring and tied to acquisition costs.
Balance Sheet Expands Dramatically
The company’s balance sheet reflected the scale of the acquisition, with total assets more than tripling during the year. Shareholder equity, however, softened due to acquisition expenses and changes in the financing structure.
A Transformational Year with Key Questions for 2026
UAC’s 2025 results tell a clear story: the company is in the midst of a strategic transformation. Revenue momentum validates the logic of expansion, but the steep decline in reported profits underscores the challenges of integration and cost management.
As UAC enters 2026, the focus will shift from acquisition headlines to integration synergies, margin recovery, and sustainable earnings growth—the key indicators that will determine whether the 2025 profit slump was a temporary setback or a longer-term concern.
The figures are based on the company’s unaudited results for the year ended December 31, 2025.