KEY POINTS

• UAC of Nigeria earnings rose sharply after C.H.I. deal.
• UAC of Nigeria earnings absorbed one-off acquisition costs.
• UAC of Nigeria earnings outlook hinges on execution.

UAC of Nigeria Plc reported a sharp increase in earnings in 2025, driven by its acquisition of consumer goods maker C.H.I. Limited, as the company expanded into faster-growing categories despite absorbing sizeable one-off transaction costs.

The diversified Nigerian group said revenue rose 74 percent to ₦343.4 billion for the year ended Dec. 31, 2025, from ₦196.9 billion a year earlier, marking a turning point in its growth strategy. The performance reflects the first full impact of C.H.I. Limited alongside steady contributions from UAC’s existing businesses.

The company described the year as a strategic inflection point, combining rapid scale expansion with stronger underlying profitability, even as acquisition-related expenses weighed on reported results.

UAC of Nigeria earnings lift from portfolio expansion

UAC of Nigeria earnings were boosted by its entry into large consumer categories following the completion of the C.H.I. Limited transaction. Excluding ₦21.2 billion in one-off acquisition costs, underlying profit before tax climbed 76 percent year on year to ₦28.7 billion, highlighting the resilience of the group’s operating base.

In the fourth quarter, the consolidation of three months of C.H.I. Limited’s results helped lift revenue by 62 percent to ₦183.8 billion, offering early insight into the earnings potential of the enlarged portfolio. Operating profit for the quarter fell to ₦8.2 billion from ₦12.2 billion a year earlier, reflecting transaction costs linked to the deal.

Adjusted for those exceptional items, quarterly operating profit rose to ₦20.3 billion, a 66 percent increase compared with the same period in 2024, underscoring the strength of underlying operations.

UAC of Nigeria earnings shaped by acquisition costs

Group Managing Director Fola Aiyesimoju said 2025 marked a pivotal year for the company, with the acquisition materially increasing scale and positioning UAC for sustained growth.

“While profitability was impacted by ₦21 billion in one-off acquisition costs, our underlying performance was strong,” Aiyesimoju said, noting that profit before exceptional items rose to about ₦29 billion from ₦16 billion in 2024.

Furthermore, with the transaction now completed, management said attention will shift toward execution. Priorities include margin recovery, tighter working capital management and delivering returns in line with the group’s long-term growth strategy.

The results position UAC as a more significant player in Nigeria’s consumer landscape, at a time when scale and operational efficiency are becoming increasingly critical to navigating inflationary pressures and volatile input costs.