UAC profit dips to N7.36bn in H1

cover, Financial Markets

UAC of Nigeria Plc has reported a profit after tax of N7.36bn for the half-year ended June 30, 2025, marking a 22.9 per cent decline compared to the N9.54bn recorded in the corresponding period of 2024.

The dip in net profit occurred despite strong topline performance during the period. Revenue for H1 2025 stood at N110.41bn, representing a 32.6 per cent increase from the N83.25bn posted in H1 2024. Gross profit also improved 51 per cent to N28.26bn from N18.71bn in the same period last year, driven by stronger sales volumes across key subsidiaries.

Operating profit rose 89 per cent year-on-year to N12.59bn, compared to N6.66bn in H1 2024. This was supported by improved operating efficiency and higher contributions from associates. UAC’s share of profit from equity-accounted investees rose sharply to N2.13bn in H1 2025 from N475.37m in the same period of 2024.

However, the company’s bottom line was significantly affected by a reversal in net finance income. In H1 2024, UAC reported N7.82bn in net finance income, but this swung to a net finance cost of N3.62bn in H1 2025 due to a combination of lower investment returns and increased finance costs. Finance income fell by 76 per cent to N2.56bn, while finance costs more than doubled to N6.18bn.

As a result, profit before tax dropped by 25.7 per cent to N11.10bn from N14.95bn, while income tax expenses stood at N3.74bn, lower than the N5.41bn paid in the same period last year.

Profit attributable to shareholders declined to N6.96bn, compared to N8.91bn in H1 2024, reflecting the impact of rising costs and reduced finance income on overall profitability. Earnings per share dropped from 304 kobo to 238 kobo, a 21.7 per cent.

Total assets rose slightly to N161.49bn at the end of June 2025, up from N157.73bn at year-end 2024. Cash and cash equivalents improved to N46.81bn, while trade and other receivables increased to N10.18bn.

Shareholders’ equity grew to N69.52bn, compared to N62.74bn as of December 2024. Retained earnings increased to N53.17bn, reflecting accumulated profits despite the current year dip.