UAC of Nigeria Plc (UACN) has delivered a robust financial performance for the fiscal year ended December 31, 2024, demonstrating significant growth and profitability. The company’s profit after tax surged by an impressive 90%, reaching N16.9 billion compared to N8.9 billion in the prior year. This remarkable achievement was primarily fueled by a substantial 64% increase in revenue, which climbed to N197.6 billion in 2024 from N120.5 billion in 2023. This revenue growth reflects UACN’s successful business strategies and its ability to capitalize on market opportunities. The company’s strong performance is a testament to its operational efficiency and its diversified portfolio of businesses.
The fourth quarter of 2024 alone contributed significantly to the overall yearly growth, with revenue reaching N64.4 billion, a 65% increase compared to N39 billion in the same period of 2023. This consistent performance throughout the year underscores the company’s resilience and its capacity to maintain momentum in a dynamic economic landscape. The notable increase in revenue during the final quarter suggests strong year-end sales and effective marketing campaigns. This momentum further positions UACN for continued success in the coming year.
UACN’s financial success is underpinned by a combination of factors, including increased sales, improved margins, and higher finance income. While the company’s cost of sales increased to N151.3 billion in 2024 from N99.2 billion in the previous year, the substantial rise in revenue more than compensated for this increase, resulting in a gross profit of N46.3 billion, up from N21.3 billion in 2023. This significant growth in gross profit indicates the company’s ability to manage its cost structure effectively while maximizing revenue generation.
The company’s operating profit also saw a remarkable increase, rising to N18.6 billion in 2024 from N9.1 billion in 2023. This improvement in operating profit highlights the effectiveness of UACN’s operational strategies and cost control measures. Furthermore, finance income played a crucial role in UACN’s overall positive performance, increasing to N12.9 billion from N5.9 billion in 2023. This substantial increase was primarily driven by higher returns on the company’s investments, demonstrating the effectiveness of its investment strategies.
Despite a rise in finance costs, which increased to N6.9 billion in 2024 from N3.5 billion in the previous year due to higher borrowing levels, UACN effectively managed these costs. The increased finance income from investments helped to offset the higher borrowing costs, showcasing the company’s ability to balance its financial obligations. This prudent financial management contributed to the overall profitability and resilience of UACN.
UACN’s profit before tax soared by an impressive 109% to N25.8 billion in 2024, compared to N12.3 billion in the preceding year. This substantial growth reflects the cumulative impact of the company’s strategic initiatives, robust revenue growth, and improved profit margins. The company’s total assets also grew considerably, reaching N156.8 billion in 2024 from N112.3 billion in 2023, indicating continued investments in business operations and expansion. Furthermore, the increase in cash and cash equivalents to N40.3 billion from N25.3 billion in 2023 reinforces UACN’s strong liquidity position, providing a solid foundation for future investments and growth opportunities. The company’s equity attributable to shareholders also increased by 24% to N62.7 billion from N50.7 billion in 2023, reflecting the positive impact of retained earnings from the strong financial performance. This increase in shareholder equity further strengthens the company’s financial position and enhances its ability to create value for its investors.
