By Bamidele Famoofo
WorldStage– The revenue of UAC of Nigeria Plc, a leading diversified company based in Nigeria with operations spanning several sectors of the economy, grew more than three times to N365 billion while gross profit grew almost four times to N105 billion in its half year financial period ended June 2026.
The growth in revenue was attributed to the consolidation of the financial figures of C.H.I Limited, its packaged food and beverages wholly-owned subsidiary.
C.H.I. Limited is a leading FMCG company with three distinct business segments – drinking yoghurt, juice, nectar and still drinks, and snacks. The company operates brands such as Chivita, Hollandia, Capri-Sun, Beefie and SuperBite.
UAC’s group performance and financial review for second quarter of 2026, indicated that revenue increased by 219 percent year-on-year to N173.7bn, supported by the consolidation of C.H.I. Limited, volume growth in the Packaged Food and Beverages and Paints segments, which more than offset revenue declines in the Edibles and Feed, and the Quick Service Restaurants segments.
Gross profit increased by 255 percent to N49.7bn and gross profit margin increased 290bps to 28.6%, reflecting the consolidation of C.H.I., earnings mix (greater contribution from higher-margin Food and Beverages segment), as well as moderating input costs.
Operating Profit was N20.6bn in Q2 2026 (Q2 2025: N5.8bn). The increase in profitability reflects gross margin expansion which more than offset rising operating costs. Operating expenses of N30.3bn were 240 percent higher compared to Q2 2025, driven by the addition of operating expenses from C.H.I. Limited. The Group recorded an increase in opex/sales ratio of 106bps to 17.4% in Q2 2026 from 16.4% in Q2 2025 due to investments in brand building initiatives and promotional activities.
Net finance cost of N9.4bn in Q2 2026 compared to N1.5bn in Q2 2025 reflecting interest on borrowing from the consolidation of C.H.I. Limited. Share of profit from associate companies of N652mn decreased compared to N1.8bn in Q2 2025, due to non-repetition of gains from non-core property sales recognised at MDS Logistics in the prior year.
Profit before tax was N11.9bn, 96 percent higher than ₦6.1bn in Q2 2025. Total profit for the period was N6.4bn compared to N4.0bn in Q2 2025. Earnings per share of 209 Kobo in Q2 2026 compared to 132 Kobo recorded in Q2 2025. Annualised Return on Invested Capital (ROIC) was 25.4 percent as at H1 2026 (H1 2025: 39.6%).
Commenting on the results, Group Managing Director, Fola Aiyesimoju, stated: “Our results for the first half of 2026 reflect progress against the objectives to deliver scale, integrate C.H.I. under UAC’s ownership, drive margin expansion, and optimise working capital. Group revenue grew 3.3x to N365bn, operating profit 3.9x to N49bn and profit before tax 3.1x to N34bn, driven by growth in our Packaged Food and Beverages and Paints businesses; performance in our Edibles and Feed businesses was mixed and our Quick Service Restaurants business continued to be challenging. Net debt reduced by N37bn on account of strong cash generation. We remain focused on implementing our plan to drive value creation.”
Cash flow, debt and liquidity
Free cash flow was N70.9bn in H1 2026 (H1 2025: N8.8bn). The increase reflects both higher operating profitability and working capital release, particularly N29.7bn reduction in inventory as the Group focuses on optimising working capital.
Net debt reduced by N37.0bn to N256.9bn and gross borrowings by N37.8bn to N307.0bn over the half year. Long-term debt to-LTM EBITDA ratio improved to 1.6x in Q2 2026.
