UAC of Nigeria Plc (UACN), one of Nigeria’s leading conglomerates, has recorded its highest after-tax profit in a decade, reaching ₦16.9 billion in 2024, a remarkable 145% increase from ₦8.84 billion in 2023. This growth was primarily driven by a strategic product expansion, strong sales in its packaged food and livestock feed businesses, and a disciplined approach to financial management amid economic uncertainties.
Despite facing economic headwinds such as rising inflation and a volatile foreign exchange market, UACN leveraged its diversified business model and innovative product strategies to boost revenue and profitability.
According to Folasope Aiyesimoju, Group Managing Director of UACN, the company’s stellar financial performance was the result of strategic initiatives aimed at expanding into new markets and offering greater value to consumers.
“Specific initiatives include aggressively pursuing new markets with products offering value to the consumer, a rigorous focus on pricing and margin, and careful risk management regarding interest rates and foreign exchange,” Aiyesimoju said.
A breakdown of UACN’s earnings reveals that sales from its food and feed businesses were the primary revenue drivers. The company’s flagship sausage brand, Gala Sausage Rolls, along with its livestock feed segment, contributed significantly to its earnings surge.
- Revenue surged to ₦197.6 billion in 2024, up from ₦120.5 billion in 2023, representing a 64% growth.
- The Edibles and Feeds segment generated ₦102.8 billion, reflecting a 53.7% increase from ₦66.9 billion in 2023.
- The Packaged Food and Beverages segment contributed ₦58 billion, while the Paints segment added ₦36.4 billion to total revenue.
UACN’s ability to deliver strong results despite Nigeria’s economic difficulties was also supported by its effective foreign exchange management strategies. The company recorded a 123.4% increase in foreign exchange gains, growing to ₦9.4 billion from ₦4.2 billion in 2023, helping to cushion the impact of the naira’s devaluation.
Funke Ijaiya-Oladipo, Group Finance Director of UACN, attributed the company’s financial success to its disciplined cost optimization, efficient working capital management, and prudent risk strategies.
“Our disciplined approach to financial management was instrumental in delivering these results. We maintained a strong focus on cost optimization, working capital efficiency, and prudent risk management, which supported both top-line growth and profitability,” she said.
Ijaiya-Oladipo further emphasized UACN’s commitment to sustainable growth in 2025, highlighting strategic capital allocation and continued efforts to maximize shareholder value.
Beyond product expansion, UACN’s investment in digital innovation played a crucial role in boosting its operational efficiency and customer engagement. The company recently launched the 1879 Tech Hub, an initiative designed to drive digital transformation and innovation across its business operations.
“The launch of the 1879 Tech Hub underscores our commitment to leveraging technology for sustainable growth and operational excellence,” Ijaiya-Oladipo added.
UACN’s commitment to rewarding employees for performance was also evident through its Long-Term Incentive Plan, which was introduced in 2021 to align employee interests with shareholder value creation. Under this plan, employees receive ordinary shares in the company based on achieving a minimum total shareholder return of 18% per annum.
Looking ahead, UACN remains focused on maintaining its growth trajectory through strategic investments, market expansion, and continued innovation in product offerings.
“As we continue to deliver strong results, we are aware of the challenges in the business environment, but we remain confident, resilient, and resolute to finish the year strong and start 2025 on a brilliant note,” said Oluyemi Oloyede, CEO of UAC Foods.
With earnings per share rising to ₦5.15 in 2024 from ₦3.14 in 2023, and the company’s share price increasing to ₦36 as of February 6, up from ₦32.95 at the beginning of the year, UACN is well-positioned to sustain its profitability and market dominance in the coming years.
- Profit After Tax (PAT): ₦16.9 billion (up 145%)
- Revenue: ₦197.6 billion (up 64%)
- Foreign Exchange Gain: ₦9.4 billion (up 123.4%)
- Operating Profit: ₦18.6 billion (up 104.6%)
- Earnings Per Share: ₦5.15 (up from ₦3.14 in 2023)
With its focus on innovation, financial discipline, and market expansion, UACN is poised to build on this momentum and continue delivering value to both shareholders and consumers.
