In line with its promise to reverse the trend of losses in some segments of its business unit, UAC Nigeria Plc has posted a pre-tax profit of N12.7 billion in its financial year ended 31, December, 2023, indicating a return to profitability from a pre-tax loss of N4.4 billion in similar period of 2022.
The performance is better appreciated when viewed from the background of the marginal growth in revenue earnings during the year which stood at N118.7 billion, as against N109.3 billion posted in 2022, translating to 9 percent growth as against 390 percent growth recorded in pre-tax profit.
Analysis of the group’s revenue growth indicated sales increased across its various operating segments, with the Paints, Packaged Food and Beverages, Quick Service Restaurants recording double digit growth of 24 percent, 23 percent, and 21 percent respectively, while the Animal Feeds and Other Edibles arm achieved a single digit growth of 2 percent.
The group’s management in a statement attributed its 2023 financial performance to increased revenue from sales growth and price increases, cost-saving measures introduced in its Animal Feeds and Other Edibles segment, and profit generated from the sale of non-core property assets.
Commenting on the results, the Group Managing Director of UAC Nigeria Plc, Fola Aiyesimjou, said the group’s objective in 2023 was to reverse the trend of losses in the group’s Animal Feeds Business as well as drive growth in the Packaged Foods business.
“On our earnings call for the 2022 financial year, we stated that our biggest objective was to reverse the performance trend of the Animal Feeds business and to address the challenges that negatively impacted performance of our Packaged Food and Beverages business. We are pleased to have successfully executed on this which, together with sound risk management practices, drove performance in 2023,” he stated.
In line with Aiyesimoju’s call, the group’s Animal Feeds and Other Edibles businesses, Grand Cereals Limited and Livestock Feeds Plc, posted a 1.5 percent revenue growth in 2023 to N66.9 billion from N65.9 billion posted in 2022. The segment then saw a significant 64 percent increase in pre-tax earnings, resulting in a loss before tax of N2.5 billion, compared to the N6.9 billion loss before tax reported in 2022.
The group’s Packaged Foods and Beverages business segment posted a revenue of N28.7 billion in 2023, representing a growth of 23.1 percent from the N23.3 billion posted in 2022.
The segment which features UAC Foods Limited (producers of Gala sausage roll, Supreme Ice cream, and Swan Table Water, Funtime Snacks) recorded a profit before tax of N2.7 billion in 2023, a significant uptick from N144 million loss before tax recorded in 2022.
