UAC of Nigeria Plc, one of the country’s leading conglomerates, achieved a remarkable financial milestone in 2024, posting its highest profit in a decade. The company’s profit after tax (PAT) soared to N16.9 billion, marking a 145% increase from the N8.9 billion recorded in 2023. This impressive growth was largely fueled by strong sales in its flagship Gala sausage rolls and robust performance in the livestock feeds segment.
Navigating Economic Headwinds with Strong Earnings
Despite Nigeria’s challenging economic environment, including persistent inflation and currency devaluation, UACN managed to outperform expectations. The group’s unaudited financial report for the 2024 fiscal year revealed that the surge in profits was driven by solid contributions from its subsidiaries, alongside significant gains from foreign exchange activities.
The devaluation of the naira posed a major hurdle for many businesses, but UACN turned it into an advantage. The company recorded a 123.4% jump in foreign exchange gains, rising to N9.4 billion from N4.2 billion in 2023.
Diverse Subsidiaries Fueling Growth
Operating across multiple sectors—including food and beverages, real estate, paints, agriculture, logistics, and manufacturing—UACN’s diverse portfolio helped cushion the impact of economic volatility. Key subsidiaries such as UAC Foods Limited, Livestock Feeds, Mr Bigg’s, UAC Dairies, and Chemical and Allied Products Plc all played critical roles in driving the conglomerate’s growth.
In 2024, UACN’s operating profit more than doubled, climbing 104.6% to N18.6 billion, compared to N9.09 billion in 2023. This growth outpaced the company’s 55.5% rise in the cost of sales, which reached N151.3 billion from N99.2 billion in the previous year.
Breakdown of Revenue Sources
- Edibles and Feeds: This segment was the star performer, generating N9.08 billion in profits. Revenue soared by 53.7% to N102.8 billion, up from N66.9 billion in 2023.
- Packaged Foods & Beverages: UAC Foods posted an impressive 373% increase in operating profit, rising to N5.14 billion from N1.3 billion the previous year. Revenue also more than doubled to N58 billion, compared to N28.7 billion in 2023.
- Paint Business: Contributed N5.3 billion in profits with revenue hitting N36.4 billion.
- Quick Service Restaurants (QSR): Despite losses of -N1.3 billion, the segment remains an integral part of UACN’s diversified strategy.
- Other Ventures: Generated N9.6 billion in profits, further strengthening the conglomerate’s earnings base.
Overall, UACN’s total revenue for 2024 surged to N197.6 billion, up from N120.5 billion in 2023—a clear testament to the company’s resilience and strategic focus.
Product Innovation as a Growth Driver
A key highlight for UAC Foods in 2024 was the launch of ‘Gala Chin Chin’, an extension of its iconic Gala brand, which has been a household name for over six decades. The new product received positive market feedback, contributing significantly to the year’s revenue growth.
“Innovation is the lifeblood of branded foods,” said Oluyemi Oloyede, CEO of UAC Foods. “Launching a new product under the Gala brand in August 2024 was a bold move, and we’re proud of the overwhelming support from our partners and the enthusiastic reception from consumers.”
Looking Ahead: Confidence Amid Challenges
While the Nigerian business landscape remains fraught with economic uncertainties, UACN remains optimistic. “We’re fully aware of the hurdles in today’s business environment,” Oloyede noted. “However, our strong performance in 2024 has strengthened our confidence. We are committed to sustaining this momentum, closing the year on a high note, and entering 2025 with renewed vigor.”
With its diversified portfolio, strategic innovations, and resilient operations, UAC of Nigeria is well-positioned to continue its growth trajectory in the years ahead.
