UAC Nigeria PLC ended the 2025 financial year with remarkable revenue gains but a sharp decline in profitability, highlighting the financial trade-offs of the company’s aggressive expansion strategy.
The group’s unaudited full-year results show revenue surged 74% year-on-year to ₦343.4 billion. The increase was driven primarily by the expanded packaged foods and beverages portfolio, bolstered by the acquisition of C.H.I. Limited. The acquisition contributed significantly to UAC’s topline, positioning packaged foods as the primary revenue engine for the year.
Brandspur Brand News reports that while revenue growth was robust, it did not translate into headline profit gains. Profit before tax fell by over 70% year-on-year, and profit after tax dropped to below ₦1 billion, a sharp decline from 2024. Management cited one-off acquisition-related costs exceeding ₦21 billion and elevated finance charges in a high-interest environment as the main reasons for the earnings compression.
The company’s final quarter of 2025 highlighted the contrast between sales growth and profitability pressures. Q4 revenue climbed 62% to ₦183.8 billion, reflecting the full contribution from the newly acquired business. Despite this, UAC reported a loss after tax of ₦4.9 billion for the quarter, reversing the profit achieved in Q4 2024. Operating profit for the quarter also declined on a reported basis, as transaction costs and integration expenses were fully recognised.
However, underlying performance appears more resilient when adjusted for non-recurring items. Full-year adjusted profit before tax was approximately ₦28.7 billion, and Q4 operating performance showed strong year-on-year growth, indicating that the reported profit slump was largely due to exceptional items.
Beyond the income statement, UAC’s balance sheet reflected the scale of its transformation. Total assets more than tripled in 2025, reflecting the acquisition and the company’s repositioning as a major consumer goods player. Shareholder equity softened due to acquisition-related costs and changes in the financing structure.
For investors, analysts say UAC’s results illustrate a company in the midst of strategic repositioning. While revenue momentum validates the logic behind the expansion, the decline in reported profits underscores the challenges of cost management, integration, and operational execution.
Looking ahead, UAC’s focus in 2026 will shift toward achieving integration synergies, margin recovery, and sustainable earnings growth. Management aims to convert 2025’s revenue achievements into long-term profitability, turning the current profit decline into a temporary adjustment on the path to growth.
“The figures are based on the company’s unaudited results for the year ended December 31, 2025,” UAC noted in its release.
UAC’s ability to manage integration costs and capitalise on its expanded portfolio will be critical to restoring investor confidence and achieving consistent earnings performance in the coming year.
