UAC of Nigeria Plc reported a robust underlying performance for the fourth quarter and full year ending 31 December 2025, with revenue increasing significantly due to the transformative acquisition of C.H.I. Limited, although headline profitability was affected by substantial one-off acquisition and financing costs.
In its unaudited results released to the Nigerian Exchange, the conglomerate said full-year revenue rose 74 per cent to ₦343.4 billion, driven largely by the consolidation of C.H.I. Limited and improved sales across its Paints, Packaged Food and Beverages, and Quick Service Restaurants segments. Operating profit increased by 15 per cent to ₦21.6 billion.
Profit before tax for the year stood at ₦7.5 billion, down from ₦25.5 billion in 2024. However, the company explained that this decline reflected ₦21.2 billion in one-off acquisition-related costs. Excluding these exceptional items, underlying profit before tax climbed by 76 per cent to ₦28.7 billion, compared with ₦16.3 billion in the prior year.
Segmental performance showed that Packaged Food and Beverages generated ₦147.6 billion in revenue in the fourth quarter, almost nine times higher than the previous year due to the inclusion of C.H.I. Limited. The Paints segment delivered ₦14.6 billion in revenue, up 14.7 per cent, supported by improved volumes and a favourable product mix.
Quick Service Restaurants recorded a 26 per cent increase in revenue to ₦646 million, with narrower operating losses due to tighter cost controls.
UAC noted that net finance costs rose sharply to ₦11.8 billion in the quarter, compared with ₦1.9 billion a year earlier, reflecting higher borrowings and hedge costs associated with the acquisition. Following the transaction, the group’s long-term debt-to-EBITDA ratio stood at 2.3 times, with management indicating a clear focus on deleveraging over the medium term.
In the fourth quarter, UAC recorded revenue of ₦183.8 billion, representing a 62 per cent year-on-year increase, supported by three months of contribution from C.H.I. Limited.
Operating profit declined to ₦8.2 billion from ₦12.2 billion in the corresponding period of 2024, reflecting higher operating expenses and acquisition costs. On an adjusted basis, operating profit rose by 66 per cent to ₦20.3 billion.
The group posted a loss before tax of ₦2.9 billion in the quarter, compared with a profit of ₦10.6 billion a year earlier. Management noted that excluding exceptional items, including ₦12.1 billion in acquisition and transition costs and ₦6.8 billion in hedge costs, underlying profit before tax stood at ₦16 billion, up 49 per cent year on year.
Commenting on the performance, Group Managing Director, Fola Aiyesimoju described 2025 as a transformational year for the company. He said the acquisition of C.H.I. Limited materially expanded the group’s scale and diversified its portfolio into high-growth categories such as drinking yoghurt, evaporated milk, and juices, anchored by brands including Chivita, Hollandia, and Capri-Sun.
According to him, while profitability was temporarily impacted by one-off costs, the group is now focused on margin recovery, working capital optimisation, and deleveraging to unlock long-term shareholder value.
