Uac Of Nigeria Plc · NSENG:UACN
Uac Of Nigeria — H1 2025 Earnings Presentation
46 slides from Uac Of Nigeria's earnings presentation, Aug 1, 2025
Slide 1: UAC of Nigeria PLC H1 2025 Results
UAC of Nigeria PLC H1 2025 Results 1 August 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 Strategy update 4 Operating context 18 H1 2025 highlights 25 H1 2025 financial performance 30 Outlook 35 Appendix 1: Segment performance highlights 38 Appendix 2: Additional financial information 40
Slide 4: Strategy update
Strategy update
Slide 5: A few years ago, we identified three phases of value creation
A few years ago, we identified three phases of value creation 5 Value created 3 Growth ▪ Organic growth ▪ Selective M&A 2 Structure ▪ Simplifying Group structure ▪ Improving technology infrastructure 1 ▪ Governance, risk and controls People ▪ Attracting, developing, and retaining top talent ▪ Buildi
Slide 6: Today, by far our greatest strength is the quality of our team
Today, by far our greatest strength is the quality of our team 6 Commercial and Operations Edibles and Feed Food & QSR Durables Logistics Real Estate Dr. Vitus Ezinwa Adegboyega Adedeji Oluyemi Oloyede Nneoma Obikili Bolarin Okunowo Mr. André Bresler Mr Odunayo Ojo MD, Grand MD, Livestock Feeds MD,
Slide 7: Our structure was a source of complexity…
Our structure was a source of complexity… 7 Agro Allied Packaged Food and Paints Quick Service Logistics Financial Real estate Beverages Restaurants services UNICO CPFA Limited Group ▪ UPDC Hotels Limited Strategic partners ▪ Manor Gardens Property Development 49% stake in UAC Foods 49% stake in UAC
Slide 8: … and we have made progress toward simplification
… and we have made progress toward simplification 8 HoldCo* Agro Allied Food Quick Service Durables Restaurants * Operating core * Non- • We retain minority interests in MDS Logistics Limited(43%) and UPDC PLC (42.4%) with excellent strategic partners controlling driving governance and long-term val
Slide 9: We have invested in foundational technology…
We have invested in foundational technology… 9 Foundational Tech Hub • Transitioned from on-premise Office 2016 application to • Established a technology hub to lead digital transformation Microsoft 365, an enterprise productivity tool. initiatives • Benefits include independent operating platforms,
Slide 10: …and deployed a set of operational tools to drive value
…and deployed a set of operational tools to drive value 10 Monthly performance reports - Used to track Buying committee reports - Used to guide Quality evaluation reports - Used to track product performance, monitor deviations and discuss purchase approvals and evolving production quality and benchm
Slide 11: Our efforts are underpinned by robust risk management
Our efforts are underpinned by robust risk management 11 Internal Audit Management Risk Committees • Transitioned from an outsourced internal audit function to a • Implemented structured risk management processes, including dedicated group internal auditor. monthly management risk committees and qua
Slide 12: In spite of the sharp devaluation of the Naira against the US Dollar …
In spite of the sharp devaluation of the Naira against the US Dollar … 12 FX Rate: $/₦ 2020 H1 2025 H1Jun-25 2025 FX Rate: 2020 - ₦380/$1; June 2025 - ₦1529/$1
Slide 13: our approach has delivered solid results operationally…
our approach has delivered solid results operationally… 13 Operating profits, USD Millions 16.21 8.62 2020 2025 1 - Trailing 12months operating profit of $16mn. FX Rate: 2020 - N380/$1; June 2025 - N1529.7/$1 Source: CBN
Slide 14: … which are increasingly reflected in our share price
… which are increasingly reflected in our share price 14 % Share Price Growth (April 1, 2019 – July 30, 2025) 848% 355% 333% UACN NGX-ASI NGX – Consumer NGXCNSMRGDS NGX Goods–consumer index Goods index The NGX Consumer Goods Index is comprised of Cadbury, Champion, Dangote Sugar, Guinness, Honeywell
Slide 15: To drive the next phase of growth, we defined clear M&A parameters
To drive the next phase of growth, we defined clear M&A 15 parameters Compliments Existing Portfolio Decorative Paint Ex. Nigeria Technology Opportunistic Animal Feed Optimisation Initial “toe-hold’ through funds Geography or several small positions Packaged Food Industrial/Protective and Beverages
Slide 16: …With the acquisition of CHI Limited fitting perfectly
…With the acquisition of CHI Limited fitting perfectly 16 Overview ▪ UAC entered into an agreement to acquire Chivita|Hollandia (CHI Limited) from The Coca-Cola Company. ▪ The transaction marks a strategic milestone in UAC’s growth agenda, expanding its presence in Nigeria’s fast-moving consumer goo
Slide 17: When completed CHI’s portfolio will further deepen our brand strength and bolster our distribution
When completed CHI’s portfolio will further deepen our brand 17 strength and bolster our distribution Segments Brands Reach * Packaged ▪ National distribution coverage Food and Beverages ▪ 115 million units of snacks, water and dairy sold ▪ 288 retail outlets Paints ▪ 11 million litres of paint * ▪
Slide 18: Operating Context
fi , Operate Cont ’ co
Slide 19: Macroeconomic stabilization underway amid inflationary pressures
Macroeconomic stabilization underway amid inflationary pressures 19 Real GDP Growth Exchange Rate ₦:$ CBN rates Parallel 3.8% 2,000 3.5% 3.5% 3.5% 3.5% 3.1% 3.2% 3.0% 2.5% 2.5% 1,500 2.3% 2.3% 1,000 500 - Aug-23 Aug-24 Sep-23 Oct-23 Jan-24 Oct-24 Dec-24 Jan-25 Nov-23 2023 Feb-24 Apr-24 May-23 Sep-24
Slide 20: Raw material price escalation in 2025, with some exceptions
Raw material price escalation in 2025, with some exceptions 20 Animal Feed Maize Soya Bean Resin Titanium Dioxide Paints Food 392 N/Kg 249 224 212 199 177 153 164 100 112 100 100 110 95 100 69 Q2 2022 Q2 2023 Q2 2024 Q2 2025 Q2 2022 Q2 2023 Q2 2024 Q2 2025 Q2 2022 Q2 2023 Q2 2024 Q2 2025 Q2 2022 Q2
Slide 21: Edibles and Feed – Performance impacted by higher average costs of Inventory vs Market Value
Edibles and Feed– Performance impacted by higher average costs of Inventory vs Market Value 21 Due to glut in the market, the Feed businesses have held key stock at a higher weighted average cost compared to market prices. Maize (₦/kg) Soya Bean (₦/kg) 1134 1077 1062 1062 1062 1062 1062 1026 1000 97
Slide 22: Trajectory of GDP per Capita – proxy for consumer power
Trajectory of GPD per Capita – proxy for consumer power 22 GDP per capita in U.S. Dollar 3,223 Unorthodox fiscal and monetary 2,998 policy regime 2,756 2,719 Reforms to 2,544 address legacy imbalances 2,328 2,198 2,230 2,202 2,176 2,153 2,083 2,088 1,927 1,969 1,792 1,688 1,563 Return to 1,222 democ
Slide 23: Population growth – key driver for market expansion
Population growth – key driver for market expansion 23 Population (1999 – 2050) Historical 377 Forecast 366 355 344 332 321 309 297 286 274 263 251 240 229 219 208 198 189 179 170 161 152 144 137 130 123 Source: WorldBank
Slide 24: Growth focused economic agenda
Growth focused economic agenda 24 ▪ Aimed at eliminating inefficiencies and improving fiscal position Fuel Subsidy Removal ▪ Benefits from completion of 650,000bpd refinery by Dangote Industries Exchange Rate Unification ▪ Floated the Naira and unified exchange rates; shift from multiple, managed ex
Slide 25: H1 2025 Highlights
o H1 2025 Highlights
Slide 26: In H1 2025, our response to the operating context delivered results
In H1 2025, our response to the operating context delivered results 26 H1 2025 Performance was supported by Strategic Pricing, Offering consumers value-driven alternatives, Cost Conscious Operations, Investment in Talent and Technology Proactive and ▪ Proactive and disciplined approach to pricing an
Slide 27: Spotlight on new products launched in H1 2025
Spotlight on new products launched in H1 2025 27 Products launched in H1 2025 with the potential to be significant contributors to revenue growth and profitability. Packaged Food & Beverages Paints Edibles and Feed Gala Classic 120g “Odogwu” Caplux Plaster Primer Laysmart Layer Pellet March 2025 Feb
Slide 28: New retail outlets opened in H1 2025
New retail outlets opened in H1 2025 28 CAP – Dulux Colour Center, Fola Osibo, Lekki CAP – Sandtex Store Asaba In H1 2025, CAP expanded its retail footprint by opening 51 new points of presence to boost visibility and enhance market access for mid-tier products.
Slide 29: Our efforts resulted in robust revenue and profit growth in H1 2025
Our efforts resulted in robust revenue and profit growth in H1 2025 29 Revenue (₦’mn) Gross margin (%) 110,406 26% 83,252 +33% 22% +312bps H1 2024 H1 2025 H1 2024 H1 2025 Operating profit (₦’mn) and Margin (%) Commentary • H1 2025 performance driven by solid growth and operational 12,593 improvement
Slide 30: H1 2025 Financial Performance
H1 2025 Financial Performance
Slide 31: H1 2025 financial highlights
H1 2025 financial highlights 31 Operating Free Cash Return on Revenue EPS1 Profit Flow Invested Capital2 H1 H1 H1 H1 H1 ₦110.4bn ₦12.6bn 238 kobo ₦8.8bn 40% +33% ₦6.7bn 304 kobo ₦6.3bn 1,135 bps vs H1 2024 H1 2024 H1 2024 H1 2024 vs H1 2024 (1) Earnings per share from continuing operations (2) Inves
Slide 32: Income statement – H1 2025
Income statement – H1 2025 32 In Naira Millions H1 2025 H1 2024 % Change Revenue 110,406 83,252 33% COGS (82,150) (64,541) 27% Gross Profit 28,256 18,712 51% Gross Profit Margin 26% 22% 312 bps Other Income 1,353 782 73% Operating Expense (17,016) (12,835) 33% Opex/Sales 15% 15% (0 bps) EBIT 12,593
Slide 33: Our earnings are well-diversified across our businesses
Our earnings are well-diversified across our businesses, with meaningful contributions from core segments 33 Packaged Food & Beverages Paints Edibles & Feed H1 2025 Share of EBIT H1 2025 Share of EBIT H1 2025 Share of EBIT 25% 51% 24% #1 in baked snacks category #1 in premium decorative #1 in fish f
Slide 34: Balance sheet and liquidity
Balance sheet and liquidity 34 Net Assets Net Debt/(Cash) Capex Cash Cycle ₦72.8bn (₦3.5bn) ₦2.5bn 89 days ₦66.4bn ₦887mn ₦5.2bn 106 days vs Dec 2024 Dec 2024 Dec 2024 Dec 2024
Slide 35: Outlook
Outlook
Slide 36: Outlook
Outlook 36 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 leveraging operating platforms for new product laun
Slide 37: Questions & Answers
Questions & Answers For further information please contact UACN Investor Relations Email: Investorrelations@uacnplc.com Phone: +234 906 269 2908
Slide 38: Appendix 1: Segment performance highlights
Appendix 1 Segment performance highlights
Slide 39: Segment performance highlights
Segment performance highlights 39 ▪ H1 2025 revenue of ₦49.2bn (+24% vs PY). EBIT of ₦3.3bn in H1 2025, compared to ₦2.9bn in H1 2024. ▪ Enhanced profit driven by proactive pricing to maintain margins. Edibles and ▪ Focus is to accelerate growth and profitability by scaling operations, deepening mar
Slide 40: Appendix 2: Additional financial information
Appendix 2 Additional financial information
Slide 41: H1 2025 financial performance
H1 2025 financial performance 41 In Naira Millions Q1 2025 Q1 2024 % Change Q2 2025 Q2 2024 % Change H1 2025 H1 2024 % Change Revenue 56,003 40,556 38% 54,402 42,696 27% 110,406 83,252 33% COGS (41,747) (31,462) 33% (40,402) (33,079) 22% (82,150) (64,541) 27% Gross Profit 14,256 9,094 57% 14,000 9,6
Slide 42: Segment Performance Snapshot – H1 2025
Segment Performance Snapshot – H1 2025 42 Revenue Profit Before Tax ₦ mn H1 2025 H1 2024 % change ₦ mn H1 2025 H1 2024 % change Group 110,406 83,252 33% Group 11,100 14,950 (26%) Edibles and Feed 49,201 39,585 24% Edibles and Feed (939) 913 n/m Paints 20,093 15,613 29% Paints 3,776 2,675 41% Package
Slide 43: Financial Position – 30 June 2025
Financial Position – 30 June 2025 43 Summary Balance Sheet Working Capital ₦ mn Jun-25 Dec-24 % ₦ mn Jun-25 Dec-24 % Non-current Assets 55,640 52,950 5% Inventory 48,844 54,965 (11%) Current Assets 105,835 104,434 1% Trade Receivables 1,609 974 65% Other Assets 16 342 (95%) Trade Payables 9,855 11
Slide 44: Net Debt Position
Net Debt Position 44 Net (Debt)/Cash Position as at 30 June 2025 (in ₦ mn) Intra-Group Cash & Cash Short-Term Long-Term Receivable / Net Cash (incl. Equivalents Debt Debt Total debt (Payable) Intra-Group) UAC HoldCo 25,584 (17,424) (5,973) (23,397) 18,318 20,505 Edibles and Feed 1,137 (12,884) (2,59
Slide 45: Cash Flow
Cash Flow 45 PBT to Free Cash Flow ₦ mn, unless otherwise stated H1 2025 H1 2024 Profit Before Tax from continuing operations 11,100 14,950 Non-Cash charges 3,867 (5,972) Changes in working capital 352 1,312 of which receivables (1,192) 340 of which inventory 6,096 (2,849) of which payables (3,596)
Slide 46: Operating segments contribution in H1 2025
Operating segments contribution in H1 2025 46 Revenue Contribution EBIT Contribution Invested Capital Split 1% 1% 25% 36% 35% 45% 48% 51% 24% 18% 16% Legend: Edibles & Feed Paints Packaged Food & Beverages QSR