Uac Of Nigeria Plc · NSENG:UACN
Uac Of Nigeria — FY2024 Earnings Presentation
34 slides from Uac Of Nigeria's earnings presentation, Apr 3, 2025
Slide 1: UAC of Nigeria PLC FY 2024 Results
UAC of Nigeria PLC FY 2024 Results 3 April 2025 Fola Aiyesimoju – Group Managing Director Funke Ijaiya-Oladipo – Group Finance Director
Slide 2: Disclaimer
Disclaimer 2 This presentation contains forward-looking statements which reflect management's expectations regarding UAC of Nigeria PLC, its subsidiaries and associate businesses (“UAC”, the “Company” or “Group”) future growth, results of operations, performance, business prospects, operating market
Slide 3: Contents
Contents 3 Introduction 4 Operating context 6 FY 2024 highlights 9 FY 2024 financial performance 17 Outlook 22 Appendix 1: Segment performance highlights 26 Appendix 2: Additional financial information 28
Slide 4: Introduction
Introduction
Slide 5: Introduction
Introduction 5 ▪ UAC of Nigeria PLC (“UAC”) recorded revenue of ₦197 billion and Profit Before Tax of ₦26 billion in 2024. ▪ Underlying operating profit increased 780% from ₦2.1 billion to ₦19bn in 2024. ▪ In this presentation we will cover ─ Operating conditions ─ Initiatives executed in 2024 ─ 202
Slide 6: Operating Context
fi , Operate Cont ’ co
Slide 7: Operating conditions remained challenging in 2024, with record-high inflation, increasing interest rates, and Naira devaluation
Operating conditions remained challenging in 2024, with record-high 7 inflation, increasing interest rates, and Naira devaluation Real GDP Growth Exchange Rate ₦:$ CBN rates Parallel 3.8% 3.5% 3.5% 3.5% 3.5% 2,000 3.1% 3.2% 3.0% 2.5% 2.5% 1,500 2.3% 2.3% 1,000 500 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 8: Escalation of raw materials and operating costs continued in 2024
Escalation of raw materials and operating costs continued in 2024 8 Animal Feed Maize Soya Bean Resin Paints Titanium Dioxide 341 Food 301 N/Kg 262 205 169 130 132 125 121 122 100 100 100 106 113 100 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024 Flour Vegetable Oil
Slide 9: FY 2024 Highlights
o FY 2024 Highlights
Slide 10: UAC is focused on domestic production, marketing and distribution of branded consumer products
UAC is focused on domestic production, marketing and distribution 10 of branded consumer products Segments Brands Reach Packaged ▪ National distribution coverage Food and Beverages ▪ 63 million units of snacks, water and dairy sold Sausage Roll Chin Chin Bread ▪ 236 retail outlets Paints ▪ 11 millio
Slide 11: In 2024, our response to the operating context delivered results
In 2024, our response to the operating context delivered results 11 2024 Performance was supported by Strategic Pricing, Cost Conscious Operations, Investment in Talent, Proactive Treasury Management Proactive and ▪ Proactive and disciplined approach to pricing and protecting our margins. discipline
Slide 12: We executed the following strategic objectives
We executed the following strategic objectives 12 ▪ Food: 3 products launched in the last 12 months. Portfolio ▪ Paints: Launched 3 new products. Growth ▪ Paints: Completed expansion of automated in-plant line, improving production lead time. ▪ Paints: Opened 61 new stores in line with objective of
Slide 13: Spotlight on new products launched in 2024
Spotlight on new products launched in 2024 13 Products launched in 2024 with the potential to be significant contributors to revenue growth and profitability. Packaged Food & Beverages Gala Chin-Chin Kingsway Loaf1 Supreme Yoghurt and Ice Cream2 July 2024 October 2024 November 2024 Paints Sandtex Se
Slide 14: Paints: New stores to deepen retail reach; Paint line automation
Paints: New stores to deepen retail reach; Paint line automation 14 61 new paint retail outlets opened in 2024 In September 2024, our Paints segment completed expansion of its automated in-plant equipment, a significant step in improving production efficiency
Slide 15: Established a Tech Hub in 2024 to drive UAC's digital initiatives
Established a Tech Hub in 2024 to drive UAC’s digital initiatives 15 • Established a technology hub to lead digital transformation initiatives • Technology services offered by the Tech Hub are organized into: 1. Digital Innovation: Build cutting-edge solutions 2. Business Technology: Provide operati
Slide 16: Our efforts resulted in robust revenue and profit growth in 2024
Our efforts resulted in robust revenue and profit growth in 2024 16 Revenue (₦’mn) Gross margin (%) 24% 197 +583bps 18% +63% 121 2023 2024 2023 2024 Operating margin (%) 1 Commentary 10% • FY 2024 performance driven by solid growth and operational improvements despite the challenging operating conte
Slide 17: FY 2024 Financial Performance
FY 2024 Financial Performance
Slide 18: FY 2024 financial highlights
FY 2024 financial highlights 18 Operating Free Cash Return on Revenue EPS1 Profit Flow Invested Capital2 FY FY FY FY FY ₦197bn ₦19bn 497 kobo ₦2.1bn 33% +63% ₦2.1bn3 314 kobo ₦1.4bn 1,274 bps vs FY 2023 FY 2023 FY 2023 FY 2023 vs FY 2023 (1) Earnings per share from continuing operations (2) Invested
Slide 19: Income statement – FY 2024
Income statement – FY 2024 19 In Naira Millions FY 2024 FY 2023 Δ% Revenue 196,901 120,528 63% COGS (150,594) (99,210) 52% Gross Profit 46,306 21,319 117% Gross Profit Margin 24% 18% 583 bps Operating Expense (30,575) (20,234) 51% Other Income 3,135 1,0591 196% Opex/Sales 16% 17% (126 bps) 1 EBIT 18
Slide 20: Our earnings are well-diversified across our businesses, with meaningful contributions from core segments
Our earnings are well-diversified across our businesses, with meaningful contributions from core segments 20 Packaged Food & Beverages Paints Edibles & Feed FY 2024 Share of EBIT FY 2024 Share of EBIT FY 2024 Share of EBIT 25% 48% 27% #1 in baked snacks category #1 in premium decorative #1 in fish f
Slide 21: Balance sheet and liquidity
Balance sheet and liquidity 21 Net Assets Net Debt Capex Cash Cycle ₦66.4bn ₦887.4mn ₦5.2bn 106 days ₦53.2bn ₦2.2bn ₦4.7bn 83 days vs Dec 2023 Dec 2023 Dec 2023 Dec 2023
Slide 22: Outlook
Outlook
Slide 23: Corporate action: N644 million dividend to UAC shareholders
Corporate action: N644 million dividend to UAC shareholders 23 ▪ Total dividend of 22 kobo per ordinary share (₦644 million) FY 2024 ▪ Qualification date: May 21, 2025 Dividend ▪ Register of shareholders will be closed from May 22, 2025, to May 28, 2025 (both dates inclusive) (N644 million) ▪ Annual
Slide 24: Outlook
Outlook 24 Despite the challenging operating context, we aim to build on the strong performance recorded thus far. Our focus remains on creating shareholder value by prioritising profitable growth, simplicity, and scale. • Growth: Prioritise growth across our leading consumer segments while leveragi
Slide 25: Questions & Answers
Questions & Answers For further information please contact UACN Investor Relations Email: Investorrelations@uacnplc.com Phone: +234 906 269 2908
Slide 26: Appendix 1: Segment performance highlights
Appendix 1 Segment performance highlights
Slide 27: Segment performance highlights
Segment performance highlights 27 ▪ EBIT of ₦9.9bn in 2024, compared to ₦24mn operating loss in 2023. 966bps EBIT margin expansion. Edibles and ▪ Enhanced profit driven by cost management initiatives and proactive pricing. Feed ▪ Focus is on sustained profitability, enhanced distribution, strengthen
Slide 28: Appendix 2: Additional financial information
Appendix 2 Additional financial information
Slide 29: FY 2024 financial performance
FY 2024 financial performance 29 In Naira Millions H1 2024 H1 2023 Δ% H2 2024 H2 2023 Δ% FY 2024 FY 20231 Δ% Revenue 83,252 52,870 57% 113,648 67,658 68% 196,901 120,528 63% COGS (64,541) (44,252) 46% (86,054) (54,958) 57% (150,594) (99,210) 52% Gross Profit 18,712 8,619 117% 27,595 12,700 117% 46,3
Slide 30: Segment Performance Snapshot – FY 2024
Segment Performance Snapshot – FY 2024 30 Revenue Profit Before Tax ₦ mn FY 2024 FY 2023 Δ% ₦ mn FY 2024 FY 2023 % change Group 196,901 120,528 63% Group 25,547 12,340 107% Edibles and Feed 102,818 66,942 54% Edibles and Feed 4,832 (2,452) n/m Paints 36,362 23,890 52% Paints 6,064 3,779 60% Packaged
Slide 31: Financial Position – 31 December 2024
Financial Position – 31 December 2024 31 Summary Balance Sheet Working Capital N mn Dec-24 Dec-23 Δ% N mn Dec-24 Dec-23 Δ% Non-Current Assets 52,950 48,348 10% Inventory 54,965 26,917 104% Current Assets 104,434 63,467 65% Trade Receivables 974 1,280 (24%) Other Assets 342 531 (36%) Trade Payables 1
Slide 32: Net Debt Position
Net Debt Position 32 Net (Debt)/Cash Position as at 31 December 2024 (in ₦ mn) Cash & Cash Short-Term Long-Term Net (debt)/cash Equivalents Debt Debt Total debt (excl. Intra-Group) UAC HoldCo 21,789 (268) (5,700) (5,967) 15,821 Edibles and Feed 2,056 (30,892) (2,778) (33,670) (31,614) Paints 7,015 -
Slide 33: Cash Flow
Cash Flow 33 PBT to Free Cash Flow ₦ mn, unless otherwise stated FY 2024 FY 2023 Profit Before Tax from continuing operations 25,547 12,340 Non-Cash charges (752) (5,636) Changes in working capital: (14,983) (8,137) of which receivables 2,489 (5,022) of which inventory (28,201) (2,909) of which paya
Slide 34: Operating segments contribution in FY2024
Operating segments contribution in FY2024 34 Revenue Contribution EBIT Contribution Invested Capital Split 1% 48% 2% 29% 25% 52% 58% 15% 25% 27% 18% Legend: Edibles & Feed Paints Packaged Food & Beverages QSR