UAC Nigeria PLC (UACN) has unveiled its 2025 financial results, revealing a mixed performance that caught many investors’ attention. Profit before tax plunged by 71%, while earnings per share (EPS) fell to just 29 kobo. Yet, beneath these headline figures lies a transformative development—the acquisition of CHI Limited—which has positioned UACN for significant long-term growth in Nigeria’s fast-growing food and beverage sector.
The acquisition, completed in the last quarter of 2025, brought iconic brands such as Hollandia, Chivita, and Capri-Sun under UACN’s umbrella. According to Group Managing Director Fola Aiyesimoju, the deal “broadens UACN’s operating base, strengthens our snacks portfolio, and deepens leadership and operational capacity across the Group.” The move instantly boosted UACN’s presence in the packaged food and beverage market, demonstrating the company’s strategic ambition.
Financially, the acquisition delivered a surge in revenue but came with short-term challenges. The packaged food and beverage segment jumped 252% to N204.54 billion, now contributing 60% of total revenue. However, the high acquisition cost of N182.4 billion, coupled with rising interest expenses, caused profit before tax to fall sharply and the interest coverage ratio to drop to 1.1x. Despite these pressures, gross profit rose 64% and operating profit increased by 14%, signaling the resilience of UACN’s core business.
For investors, patience is key. While the EPS decline and overhead costs, which consumed over 76% of gross profit, reflect short-term strain, the company has a long-term refinancing plan, including a 7-year Naira loan and a N150 billion bond program, to ease financial pressure. UACN’s 2025 performance illustrates that the firm is prioritizing sustainable growth and strategic positioning over immediate shareholder returns, even as its stock gained 189% YtD last year and continues a modest upward trajectory in 2026.
Looking ahead, the successful integration of CHI Limited will determine UACN’s trajectory in 2026 and beyond. If managed effectively, the acquisition could yield substantial rewards, reinforcing the company’s market leadership and unlocking value for shareholders. As Aiyesimoju notes, “2025 was a pivotal year for UACN. With this expanded portfolio, we are well-positioned to deliver long-term value while strengthening our market position.” Investors will be watching closely as UACN navigates this critical transition.
source: nairametrics