UAC Nig Plc has released its Audited financial result for the full year ended December 2021, revealing a profit of N2.59 billion, representing a 33% decline from the prior-year period, as revenue grew by 25%.

The period under review witnessed a persistent increase in prices of goods and services, as inflationary pressures affected both consumers and producers. Hence, producers were also faced with a significant increase in the cost of raw materials and general production costs.

Although the company recorded growth in sales on the back of double-digit food inflation, bottom-line profit was greatly subdued by production, finance costs which increased by a whopping 28% and 194%, respectively, during the period under review.

Key highlights of the result

A cursory view of the result shows that the group operates 5 key segments including Animal feeds, Paints, Food and Beverages, Quick Service Restaurants, and Others.
The Animal feeds segment raked in 60% of the total revenue, generating N62 billion, the highest revenue by segment. Food and Beverages generated the second-highest revenue, raking in N24 billion, representing 23% of total revenue. The Paints, Quick Service Restaurants, and Others segments made up the remaining 17% of the total revenue.
Interest income from bank deposits stood at N907 million, as against N1.05 billion in 2020. The group also received interest on Eurobonds, recording N301 million.
In addition, the company also made money from gains on investment properties, raking in a total of N1.14 billion during the financial period.
UAC Nig Plc revenue performance for the period was affected by high costs of sales as well as selling, distribution and administrative expenses, which also affected profit as a trickled down effect.
A further look at the financial results showed the group’s total assets are now at N98.46 billion, net assets declined by 16.21% to N50.84 billion. The group’s long-term borrowings stood at N339 million

UAC Nig Plc’s earnings per share (EPS) for the period was at N0.63, a 8.70% decrease from N0.69 in FY 2020.

The company last traded at N12.10 per share and has grown by 27.37% from year-to-date.

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