UAC of Nigeria (UACN)’s buyout of rival Chivita|Hollandia (CHI Limited) last October helped deliver a 311.4 per cent profit rise for the post-consolidation entity in the first quarter, compared to a year ago, its latest financials showed.
The conglomerate, whose operations span food and beverages, logistics, paint making, quick service restaurants and real estate, reported a 241 per cent jump in revenue to N191 billion in the review period.
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That was boosted both by the CHI acquisition and topline expansion in its packaged food & beverages business and its paint division.
“Our results for Q1 2026 reflect the consolidation of C.H.I.’s performance, continued strong performance at our Packaged Food and Beverages and paints businesses and work we have done to drive improved performance at C.H.I,” Fola Aiyesimoju, the CEO, said in a statement.
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“Our post-acquisition objectives were to (i) integrate C.H.I. under UAC’s ownership (ii) drive margin expansion (iii) optimise working capital,” he added.
The results also indicated that UACN is widening its reach, with exports totalling N554.2 million in the period, unlike a year ago, when only domestic sales accounted for the group’s revenue. That feat was achieved, thanks to its packaged & beverages subsidiary, which solely contributed the sum, highlighting the role the CHI acquisition has played in helping the company expand into markets outside its base Nigeria.
Its quick service restaurant unit, which pioneered fast-food business in Nigeria in 1986 with the launch of Mr Bigg’s, was the only loss-making subsidiary of the company during the period, incurring N317 million in pre-tax loss, down from N390 million in the same period of last year.
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Finance income stood at N8.3 billion, marking a 591.3 per cent surge.
Profit before tax increased 348 per cent to N22.6 billion, while profit after tax scaled up to N13.6 billion from N3.3 billion. Return on equity stood at 16.3 per cent. Net profit margin, which shows how much of revenue has turned into net profit, edged up to 7.1 per cent from 5.9 per cent.
UACN’s shares have returned 64 per cent year to date, with market capitalisation now at N482.8 billion.
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