WorldStage Newsonline– UAC of Nigeria PLC has released its Unaudited Condensed Consolidated Financial Statements for the 3 month Period ended 31 March 2022 with 4.46% drop in profit for the period to N638.745 million from N668.560 million in Q1 2021.
The profit drop is in spite of double digit growth in revenue, operating profit, and earnings per share.
Highlights of the results include Revenue of ₦27.7 billion, 25.6% increase year on year with topline growth across all business segments: animal feeds and other edibles (+18.0%), paints (+81.2%), packaged food and beverages (+9.9%), and quick service restaurants (+30.1%).
Gross profit 26.5% higher YoY at ₦5.1 billion; Gross margin of 18.3% is 13 bps higher as price increases and higher sales offset rising raw material costs.
Operating profit 62.2% higher YoY at ₦1.9 billion, margin expansion of 152 bps to 6.8%, led by the Paints segment.
Underlying operating profit of ₦1.5 billion, is 28.6% higher YoY, after adjusting for the profit of N386 million recognised on the sale of non-core investment property.
Profit before tax 4.8% lower than Q1 2021 at ₦979 million. Profitability was impacted by higher finance costs YoY.
Earnings per share 50.3% higher than Q1 2021 at 18 kobo. The increase reflects the benefit of recognising 100% of
Commenting on the results, Group Managing Director, Fola Aiyesimoju, stated: “We delivered double-digit growth in revenue, operating profit, and earnings per share for the first quarter and continue to manage escalating raw material and energy costs.
“Working capital levels and short-term debt are elevated on account of the decision to increase inventory holding in the Animal Feeds and Other Edibles segment to mitigate the risk of supply chain disruptions.
“We are closely monitoring inventory levels and leverage and expect the negative impact of interest expense to unwind asinventory levels normalise. Earnings per share increased 50% year on year, reflective of the earnings accretive acquisition of the 49% stake in UAC Foods which we did not own in the first quarter of 2021. “For all our businesses, the impact of rising inflation is a key focus and our management teams remain focused on proactive pricing. We are mindful of the recent events in Russia and Ukraine and resultant supply disruptions of key commodity inputs including wheat, vegetable oil, maize and fertilizer. We remain committed to executing our key priorities to simplify our structure and processes, drive profitable growth across our core operating segments, and enhance shareholder value.”
