UAC of Nigeria Plc has posted its best financial performance in years, recording a profit before tax of N25.5 billion for the year ended December 31, 2024.
This represents a remarkable 107% increase compared to the previous year, marking a major milestone in the company’s turnaround journey.
The strong result is a culmination of years of painstaking restructuring efforts after private equity firm Themis Capital took over in 2018.
Back then, the once-thriving conglomerate was grappling with years of losses, declining revenues, and operational inefficiencies. Fast forward six years, and UAC appears to be back on its feet, with multiple business units firing on all cylinders and the group returning to solid profitability.
Since the change in leadership, UAC has been reshaped from a sprawling holding company into a leaner, performance-focused enterprise.
In his words, “Meaningful improvements in growth and profitability were recorded across our core operating segments. We aggressively pursued new markets, introduced new products, and focused on cost control, pricing, and risk management.”
UAC’s revenue jumped by 63.4% year-on-year to N197.9 billion, driven by strong performance across all its major business segments — including food, paints, and real estate.
UAC’s core business segments delivered a strong performance overall, though with varying results.
Beyond product sales, UACN generated additional income from interest on short-term bank deposits and foreign exchange gains, totaling N12.6 billion, more than double the amount earned in 2023.
On the cost side, expenses remained high, with raw material costs surging by 55.72% to N133.253 billion, while personnel expenses jumped 51% to N17.596 billion.
Despite these rising costs, UACN improved profitability, as seen in its expanding profit margins
Despite the significant profit jump, UAC’s Board of Directors has proposed maintaining its dividend at 22 kobo per share, the same as in 2023.
The dividend will be paid on June 5, 2025, to shareholders registered by May 21, 2025.
While some investors may have hoped for a higher payout given the record profits, analysts suggest the company is prioritizing reinvestment and consolidation, especially as it looks to scale growth in 2025.
What next
Group Managing Director Fola Aiyesimoju emphasized that 2025 will focus on consolidating gains made in 2024, particularly through talent development, expanding market share, and maintaining operational efficiency.
Group Managing Director Fola Aiyesimoju emphasized that 2025 will focus on consolidating gains made in 2024, particularly through talent development, expanding market share, and maintaining operational efficiency.
Still, what started as a difficult journey in 2018 has evolved into one of Nigeria’s more remarkable corporate comebacks.