Follow Us on Google
By Chukwuma Umeorah
UAC of Nigeria PLC grew its full-year revenue by 74 per cent to N343.4 billion in the year ended 31 December 2025, following the consolidation of CHI Limited and sustained contributions from its core operating businesses.
The unaudited results showed that the acquisition of CHI Limited, completed in October 2025, materially expanded the Group’s operating scale, with Packaged Food and Beverages accounting for the largest share of revenue in the period. The strong topline performance, however, was accompanied by lower reported profitability due to one-off acquisition-related costs.
Profit before tax for the year declined to N7.5 billion from N25.5 billion in 2024. Excluding one-off acquisition costs of N21.2 billion, underlying profit before tax rose by 76 per cent year-on-year to N28.7 billion, compared with N16.3 billion in the prior year.
In the fourth quarter of 2025, revenue increased by 62 per cent to N183.8 billion, reflecting the inclusion of three months’ performance from CHI Limited, as well as improved sales in the Paints, Packaged Food and Beverages and Quick Service Restaurants segments. This offset weaker performance in the Edibles and Feeds segment.
Operating profit for the fourth quarter stood at N8.2 billion, down from N12.2 billion in Q4 2024, reflecting the impact of transaction and transition costs linked to the acquisition. Adjusted for these costs, operating profit rose to N20.3 billion, representing a 66 per cent increase year-on-year.
The Group recorded a loss before tax of N2.9 billion in the fourth quarter, compared with a profit before tax of N10.6 billion in the corresponding period of 2024. According to the company, exceptional items during the quarter included N12.1 billion in acquisition-related costs and N6.8 billion in hedge costs. Excluding these items, underlying profit before tax for the quarter was N16 billion, 49 per cent higher than the comparable period of the previous year.
Commenting on the results, Group Managing Director, Fola Aiyesimoju, said, “2025 was a pivotal year for UAC. The completion of the acquisition of CHI Limited significantly increased the scale of our Group, with revenue reaching N343bn, a 74 per cent increase compared to 2024.”
He added, “Group profitability was impacted by N21bn one-off acquisition costs. Excluding these, profit before exceptional items increased by 76 per cent to N29bn, from N16bn in 2024.”
Segmental performance showed that the Packaged Food and Beverages business delivered full-year revenue of N204.5 billion, reflecting the consolidation of CHI Limited. In the fourth quarter alone, the segment recorded revenue of N147.6 billion, compared with N16.6 billion in Q4 2024. Excluding acquisition-related costs, the segment posted a profit before tax of N13.8 billion for the quarter.
The Paints segment recorded steady growth, with full-year revenue rising by 23.4 per cent to N44.9 billion, while profit before tax increased by 50.5 per cent to N9.1 billion, supported by improved sales volumes and product mix.
In contrast, the Edibles and Feeds segment recorded a 10.9 per cent decline in full-year revenue to N91.6 billion, reflecting lower sales volumes and weaker pricing conditions. During the fourth quarter, the Group recognised an inventory write-down of N4.1 billion to net realisable value, contributing to a segment loss before tax of N4.9 billion.
The Quick Service Restaurants segment recorded modest revenue growth, with full-year revenue increasing by 2.2 per cent to N2.6 billion, while operating losses narrowed following tighter cost controls.
UAC also recorded improved contributions from associate companies during the year, with share of profit from associates rising to N3.4 billion, supported by sales of non-core property assets at MDS Logistics Limited.
The company said its focus is on post-acquisition integration, margin recovery, working capital optimisation and deleveraging, following the completion of the CHI acquisition.
