UAC of Nigeria Plc has reported a profit before tax of N25.828 billion for the year ended December 31, 2024, representing 109.30% year-over-year (YoY) growth from the previous year.
The unaudited Group financial statements, reviewed by Naijaonpoint, show that the company’s revenue surged by 63.96% YoY to N197.614 billion.
The significant revenue increase was primarily driven by:
Key highlights (2024 vs 2023 FY)
Commenting on the results, Group Managing Director, Fola Aiyesimoju, stated:
“We delivered a strong performance in 2024. We achieved revenue of N198bn and profit before tax of N25bn, reflecting growth of 64% and 109% respectively compared to 2023.
“This outcome was on account of the hard work, skill and dedication of leaders across the Group and their teams. At UAC, people are at the heart of our strategy, and I thank my colleagues for the effort that went into generating these results.
“Meaningful improvements in growth and profitability were recorded across our core operating segments. Specific initiatives include aggressively pursuing new markets with products offering value to the consumer, rigorous focus on pricing and margin and careful risk management regarding interest rates and foreign exchange.”
UACN delivered strong profitability metrics, with net profit rising by 90.43% and EPS surging by 64.01%, reflecting significant growth in earnings and higher value creation for shareholders.
This growth was supported by substantial margin improvements, showcasing enhanced cost efficiency and operational strength:
Additionally, liquidity and cash flow have seen a major improvement. Net cash flow from operating activities surged to N6.478 billion, marking a notable turnaround from the negative N3.033 billion in 2023. This improvement enhances UACN’s financial flexibility, supporting growth investments and expansion.
The current ratio improving to 1.45 from 1.21 further aligns with stronger operational cash flow, confirming that UACN has sufficient short-term assets to cover its liabilities and sustain its financial momentum.
UACN’s balance sheet has significantly improved, with higher liquidity, a stronger asset base, and increased shareholder equity.
The stronger balance sheet and rising ROE are positives, but the higher reliance on debt raises risks, especially if borrowing costs continue to rise. Managing leverage effectively will be crucial to sustaining profitability and avoiding financial strain in the future.
Market performance & investor outlook
The strong financial performance appears to be priced in the stock. In 2024, the share price recorded a 145% YtD return, and the momentum has continued into 2025, with a YtD gain of 14.6% as close of trading on February 6, 2025, indicating sustained investor confidence.
The strong financial performance appears to be priced in the stock. In 2024, the share price recorded a 145% YtD return, and the momentum has continued into 2025, with a YtD gain of 14.6% as close of trading on February 6, 2025, indicating sustained investor confidence.