UAC of Nigeria Plc delivered an exceptional top-line performance in its full year 2025 financial results, posting the highest revenue in its corporate history. The Lagos-based conglomerate reported a 74% year-on-year surge in revenue to ₦343.4 billion, a dramatic improvement from the ₦196.9 billion recorded in 2024. The substantial growth was driven primarily by the integration of CHI Limited, a major food and beverage business UAC acquired during the period, which boosted the company’s presence in consumer goods.
The expanded Packaged Food and Beverages division, which now includes UAC Foods alongside CHI Limited’s portfolio, emerged as the group’s most significant revenue contributor. This segment’s turnover soared by more than 250%, generating ₦204.5 billion in revenue compared with ₦58 billion a year earlier, reflecting both scale and heightened consumer demand.
Despite the strong revenue performance, profitability was severely impacted by one-off acquisition costs associated with the CHI deal. UAC booked ₦21.2 billion in acquisition-related expenses, most of which were incurred in the fourth quarter when the transaction was finalised. These expenses sharply eroded earnings, dragging net income down to just ₦504 million from ₦16.3 billion in 2024 a decline of about 97%. As a result, profit margins narrowed drastically, falling to a razor-thin 0.1% from 8.3% the prior year.
UAC’s management, however, stressed that the headline profit figure masks the strong underlying operational performance of the enlarged group. Folasope Aiyesimoju, the Group Managing Director, explained that if the one-off costs linked to the CHI acquisition were excluded, profit before exceptional items would have risen by 76% to ₦29 billion compared with the previous year. This, he said, underscores the robustness of the core business and the earnings potential of the recently integrated CHI assets.
Operating costs across the group also climbed sharply, rising by 90% to ₦58.1 billion in 2025 from ₦30.6 billion in 2024. A significant portion of these expenses was linked to integration activities within the newly acquired CHI operations. During the final quarter, the inclusion of CHI’s results increased quarterly revenues by 62% year-on-year to ₦183.8 billion, highlighting the growth opportunity the enlarged portfolio presents once integration effects subside.
However, not all segments performed strongly. The Edibles and Feeds business recorded further losses, widening to ₦7.7 billion compared with a ₦4.8 billion loss a year earlier, weighed down by falling agricultural commodity prices and inventory adjustments. The packaged food and beverages segment, despite dramatic revenue gains, also recorded a 44% drop in net income, reflecting higher operating costs and short-term integration challenges.
On a more positive note, UAC’s paints business, run through Chemical and Allied Products (CAP Plc), delivered a bright spot amid the earnings pressure. The unit posted over a 50% increase in net income to ₦9.1 billion, supported by stronger demand for premium products and improved pricing discipline.
Looking ahead, UAC’s management remains optimistic about the company’s medium-term prospects. With the CHI acquisition now complete, the focus is shifting toward margin recovery, operational execution, and working capital optimisation priorities they say will help restore profitability and unlock value from the expanded consumer brand portfolio, which includes Chivita, Hollandia, Capri-Sun, SuperBite, and Beefie. Despite the temporary compression of profitability, the enlarged UAC Group enters 2026 with a broader footprint and deeper exposure to high-growth consumer segments.
