UAC Nigeria Overcomes Soaring Expenses To Post N34bn Profit

UAC Nigeria generated N364.97 billion in revenue between January and June 2026, surpassing the N110.40 billion recorded in the first half (H1) of 2025, indicating a 230.57 percent growth. The same was seen in the company's cost of sales, which surged 217 percent to N260.41 billion in H1 2026, exceeding the N82.14 billion incurred in H1 2025. According to Prime Business Africa's (PBA) analysis of UAC Nigeria's unaudited condensed consolidated financial statements for the period ended June 30, 2026, the company's gross profit also increased threefold. The gross profit increased to N104.55 billion in the first six months of this year, rising above the N28.25 billion earned in the corresponding period in 2025, representing a 270.04 percent growth. However, the company's dividend income dropped slightly by 0.93 percent to N100.11 million during the period under review, compared to the N101.05 million posted in H1 of the previous year. But the company offset this with other operating income of N1.58 billion in H1 2026, which is a 24.11 percent increase, considering UAC Nigeria had recorded N1.27 billion in the same period in 2025. The financial statement further showed that selling and distribution expenses climbed 385.20 percent to N34.07 billion between January and June of this year, above the N7.02 billion expended in the first six months of last year. Also, administrative expenses soared by 130.71 percent to N23.05 billion in the first half of 2026, compared to the N9.99 billion posted between the first quarter (Q1) and the second quarter (Q2) of 2025. Despite the company's inability to slow down expenses, UAC was able to grow operating profit by 288.83 percent to N48.96 billion in the first six months of this year, exceeding the N12.59 billion achieved in H1 2025. Meanwhile, finance income supported the company's bottom line after rising by 328.61 percent year-on-year, from N2.56 billion to N10.97 billion, but this was eroded by a 334.15 percent jump in finance cost, which grew from N6.17 billion to N26.82 billion. As a result, net finance cost soared to N15.85 billion between Q1 and Q2 2026, up by 338.07 percent when compared to the N3.61 billion recorded in the same period the year before. Also, UAC Nigeria recorded a 37.27 percent decline in share of profit from associates using the equity method, as it dropped to N1.33 billion in H1 2026, against the N2.12 billion received in H1 2025. The impressive topline growth helped the company withstand the soaring expenses, as profit before tax (PBT) rose to N34.44 billion in the first half of 2026, up by 210.32 percent, having recorded N11.09 billion in the same period the previous year. Income tax gulped N14.41 billion from the pretax profit in the first six months of this year, compared to the N3.74 billion filed for the period between January and June 2025, reflecting a 285.42 percent increase. Consequently, UAC Nigeria reported N20.02 billion in profit after tax (PAT) in H1 2026, up by 172.14 percent when compared to the N7.35 billion recorded in H1 2025. For press releases, tip-offs, and corporate information, call 08149575257 (hotline), email: [email protected] and [email protected]