UAC of Nigeria PLC (UACN), a diversified Nigerian conglomerate, reported a spectacular 74.4% surge in revenue to N343.4 billion for 2025, a performance completely overshadowed by a catastrophic 97% collapse in its post-tax profit to just N504 million.
This stark contradiction highlights how massive financing costs from a major acquisition can devour even the most impressive top-line growth, leaving shareholder earnings nearly wiped out.
Okay News reports that the company’s pre-tax profit also plummeted to N7.5 billion from N25.5 billion in 2024, despite a strong operating performance. The dramatic profit erosion was primarily caused by a surge in finance costs to N26.8 billion, a direct result of increased borrowings used to fund the acquisition of C.H.I. Limited.
The revenue explosion was driven by the Packaged Food & Beverages segment, which grew an astonishing 254% to contribute N205 billion, accounting for about 60% of the group’s total income. However, the cost of sales increased even faster than revenue, rising 77.6% to N267.4 billion, reflecting significant inflationary pressures on inputs.
On the balance sheet, total assets more than tripled to N524.9 billion, largely due to the addition of property and equipment from the C.H.I. Limited acquisition. Despite the profit crash, investors have shown remarkable confidence, driving UACN’s share price up 189% in 2025 and maintaining gains into the new year.
, a diversified Nigerian conglomerate, reported a spectacular 74.4% surge in revenue to N343.4 billion for 2025, a performance completely overshadowed by a catastrophic 97% collapse in its post-tax profit to just N504 million.){kind=link}