UAC of Nigeria Plc reported a strong revenue performance for the year ended December 31, 2025, but posted a decline in profit after tax as rising finance costs weighed on earnings.
Revenue grew by 73 percent to ₦340.47 billion, up from ₦196.90 billion recorded in 2024 on the back of improved performance across its business segments and stronger topline expansion.
Operating profit increased by 51 percent to ₦28.50 billion from ₦18.87 billion, indicating improved operational efficiency and cost management at the core business level.
However, the company recorded a sharp reversal in net finance position, posting a net finance cost of ₦15.50 billion compared to a net finance income of ₦5.96 billion in the previous year. This represents a 360 percent negative swing and remains the primary driver behind the decline in profitability.
As a result, profit before tax fell by 36 percent to ₦16.43 billion from ₦25.55 billion in 2024, despite the strong growth in revenue and operating income.
After accounting for tax expenses, profit after tax declined by 39 percent to ₦9.91 billion, compared to ₦16.31 billion recorded in the previous year.
Earnings per share dropped to 362 kobo from 497 kobo, indicating reduced returns to shareholders in the period under review.
On the balance sheet, total assets surged with total equity and liabilities rising by 279 percent to ₦597.06 billion from ₦157.73 billion. This sharp increase suggests a major expansion in the company’s asset base, likely driven by acquisitions, revaluation, or consolidation activities.
Total equity rose modestly by 5 percent to ₦69.77 billion, indicating limited retained earnings growth despite the expansion in total assets.
Cash and cash equivalents increased by 25 percent to ₦50.91 billion from ₦40.59 billion, providing some liquidity support amid rising financial obligations.
Despite the decline in earnings, the company maintained a stable dividend payout of 22 kobo per share for the year.
However, it proposed a significantly higher dividend of 100 kobo per share, representing a 355 percent increase, signaling management’s confidence in future cash flows and earnings recovery.
Market performance reflected strong investor sentiment, with the company’s share price rising to ₦91.00 (9,100 kobo) as of December 31, 2025, from ₦31.50 (3,150 kobo) in 2024. This drove market capitalisation up by 189 percent to ₦266.28 billion.
While UAC of Nigeria delivered strong revenue and operating profit growth, the sharp increase in finance costs significantly impacted bottom-line performance.
The divergence between operating strength and net earnings highlights the importance of capital structure management going forward.
Investors are expected to closely monitor the company’s financing strategy, debt levels, and ability to sustain earnings growth while managing cost pressures in subsequent periods.
