UAC Subsidiaries Surge in Revenue, Recording Massive 612% Growth on Rising Demand

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Olori Uwem

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Mar 18, 2024
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UAC Subsidiaries Surge in Revenue, Recording Massive 612% Growth on Rising Demand

Detailed Report:

In the first half of 2024, UAC of Nigeria Plc reported a remarkable financial performance, with a net profit of N9.5 billion, marking an astonishing 612% year-on-year growth compared to N1.3 billion during the same period in 2023. Analysts attribute this success to increased consumer demand across UAC’s diverse product lines.

This unprecedented growth has positioned UAC for its highest earnings in the 21st century, driven largely by the performance of its key subsidiaries:

1. Livestock Feeds:

• In the first nine months of 2024 (9M 2024), Livestock Feeds recorded a net profit of N1.4 billion, a massive 3504% year-on-year increase from N39.3 million in 2023. The soaring demand for locally produced livestock products, fueled by high costs of imported alternatives, was a significant factor.

• Revenue grew to N28.6 billion, a 100% increase from the previous year, with a gross profit of N4.7 billion (up by 384% year-on-year).

• Operating profit reached N3.4 billion, a remarkable 789% growth compared to N384.6 million in 2023.

2. Chemical and Allied Products (CAP) Plc:

• CAP Plc achieved a net profit of N2.6 billion, reflecting a 69% increase over its 2023 profit of N1.6 billion.

• Revenue surged to N23.7 billion (up 55% year-on-year), while operating profit climbed to N2.8 billion (71% increase).

• CAP’s focus on efficient cash management and an expanded raw material inventory helped stabilize operations and support its growth.

3. UAC Foods:

• UAC Foods, another key subsidiary, posted a pre-tax profit of N4.1 billion for H1 2024, a substantial improvement from N1.3 billion in 2023, with expectations of recording its best annual earnings.

These impressive performances across UAC’s subsidiaries underscore the positive impact of high product demand and strategic expansions, propelling UAC toward a record-breaking year under the stewardship of its primary shareholder, Themis Capital Management.