August 26, 2025/CSL Research
UAC of Nigeria Plc recorded Revenue growth of 32.6% year-on-year (y/y) to ₦110.41 billion, up from ₦83.25 billion in H1 2024 in the first half of the year. The positive performance was mainly driven by volume growth and price adjustments across core operating segments:
• Edibles & feed: ₦49.07bn, up 27.3% y/y from ₦38.53bn in H1 2024
• Paints: Increased 28.7% y/y to ₦20.09bn from ₦15.61bn in H1 2024
• Packaged food and beverages: Up 44.5% y/y to ₦39.83bn (H1 2024: ₦27.57bn)
• Quick service restaurants (QSR): Dipped 12.2% y/y to ₦1.28bn (2024: ₦1.46bn)
• Others: ₦133 million, up 53.9% y/y from ₦87 million in H1 2024.
Operating Profit rose 89.1% y/y to ₦12.59 billion (H1 2024: ₦6.66 billion), driven by strong topline growth and improved cost efficiency. However, Profit After Tax declined 22.9% y/y to ₦7.36 billion (H1 2024: ₦9.54 billion), reflecting the absence of the prior year’s foreign exchange (FX) revaluation gain, which had boosted finance income.
UACN recently announced an agreement to acquire CHI Limited from the Coca-Cola Company, subject to regulatory approval, which management expects to secure before the end of 2025. For FY 2025, UACN’s revenue is projected at ₦263.72 billion, representing a 33.9% y/y increase from ₦196.90 billion in FY 2024. This growth is expected to be driven by product price increases, new product launches, higher volume sales, and a likely contribution from the acquisition in the last quarter. Cost pressures are anticipated to remain moderate throughout the year, while Operating Profit and Profit Before Tax are expected to reach approximately ₦28.07 billion (FY 2024: ₦18.67 billion) and ₦25.38 billion (FY 2024: ₦25.55 billion), respectively.
At the current EV/EBITDA of 8.01x, UACN trades at a discount to the Middle East and Africa (MEA) peer average of 9.56x. We maintain our BUY rating, with a revised target price of ₦103.44/share (previous: ₦46.34/share).
To read full report, click on the link below
UACN H1 2025 Company Update.pdf
