October 31, 2023/CSL Research
FX Gain keeps Net Profit afloat
In its 9M 2023 earnings results, the Revenue of UAC of Nigeria Plc. (UACN) advanced by 4.8% y/y to N81.53bn from N77.81bn in 9M 2022. This was predicated on the mixed performances of its Revenue segments. The Paints, Packaged Foods & Beverages, and the Quick Service Restaurants (QSR) reported growths in Revenue of 16.9%, 7.3% and 29.5% y/y to N15.26bn, N19.44bn, N2.78bn respectively, the Animal Feeds & Other Edibles and Other Revenue showed a decline in Revenue by 0.9% and 19.5% y/y to N43.89bn and N168m in the period. The company’s Cost of Sales (ex-depreciation) rose to N65.64bn from N63.98bn in 9M 2022. Gross Profit rose to N15.89bn (+14.9% y/y) from N13.83bn in 9M 2022. Consequently, its Gross profit margin rose by 1.7ppts to 19.5% from 17.8% in 9M 2022.
UACN’s Selling and Distribution Expenses declined 0.7% y/y to N5.92bn while its Administrative Expenses rose by 18.1% y/y to N7.15bn in 9M 2023. Thus, the company’s OPEX margin settled higher at 16% in 9M 2023 from 15.4% in 9M 2022. The company’s Depreciation and Amortization advanced by 32.3% y/y to N2.88bn from N2.17bn in 9M 2022 while Other Income surged to N8.57bn from N1.18bn in 9M 2022. Earnings Before Tax (EBIT) increased significantly to N7.10bn in 9M 2023 from N758m in 9M 2022.
The company reported Net finance Income of N1.88bn in 9M 2023 which was driven by an exchange gain of N3.22bn and Interest Income gains of N1.18bn in 9M 2023 bringing its Finance Income to N4.39bn in 9M 2023 whilst its Finance Costs came in at N2.51bn in 9M 2023. Consequently, UACN reported a Profit Before Tax of N9.60bn (+976.9% y/y) and a Profit After Tax of N6.7bn (+438.4% y/y).
UACN 9M 2023
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Source: Company’s Financials, CSL Research
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