WorldStage Newsonline– High inflation and low purchasing power across Nigeria are taking a toll on UAC Nigeria as shown in its just published first quarter (Q1) 2018 results.
The results were primarily hit by weaker sales across key businesses as sales of N18.3bn declined -25% y/y while profit before tax (PBT) and profit after tax (PAT) of N974m and N709m (before discontd ops) respectively both came in flattish when compared with Q1 2017.
On a segmental basis, sales for the food & beverage business declined by -29% to N14.0bn, driven by lower (down -41%) revenues within the Animal Nutrition business.
Additionally, UACN’s real estate and paints businesses posted relatively weaker revenues. A gross margin expansion of +304bps to 19.5% and a -64% decline in net finance charges were the primary drivers behind the recovery in profitability.
However PBT for the food & beverage segment declined by around -50% to N416m, driven by increased operational and input costs in the Animal Nutrition business.
According to management statements, this particular business posted a combined (Grand Cereals and Livestock Feeds) loss before tax of –N26m in Q1 2018.
