Premier conglomerate, UAC of Nigeria Plc, has released its unaudited financial results for the fourth quarter of 2021, recording a gross profit at ₦5.2 billion, which was 13 percent higher than Q4 2020.
The organization made this known in a notification to the Nigerian Exchange Limited (NGX) in Lagos on 29 January 2022.
Q4 2021 highlights
- Revenue 26% ahead of Q4 2020 at ₦29.7 billion, driven by sales growth across all business segments.
- Gross profit 13% higher than Q4 2020 at ₦5.2 billion; Gross margin 210 bps lower due to rising raw material costs and supply chain disruptions.
- Operating profit 129% higher at ₦3.6 billion. Adjusting for ₦1.5 billion unrealised fair value gain from investment properties, as well as, ₦570 million representing dividend income received prior to completion of the unbundling of the UPDC Real Estate Investment Trust (UPDC REIT) and the fair value gain recognised on completion of the unbundling, UAC’s underlying operating profit is ₦1.5 billion compared to the ₦1.6 billion recorded in Q4 2020.
- Profit before tax 22% higher than Q4 2020 at ₦3.2 billion.
- Corporate actions- Completed unbundling of 649 million units in UPDC REIT to UAC shareholders in November 2021.
Commenting on the results, Group Managing Director of UAC, Fola Aiyesimoju, stated: “We are encouraged by strong topline growth delivered across our operating platforms and improving efficiency as evidenced by our operating expenses to sales ratio. Sustained escalation in raw material costs remains a concern and resulted in deterioration of our gross profit margin which we did not fully offset with our efficiency gains. A key focus going forward is on implementing pricing strategies to improve gross margin.
In line with our strategy to simplify the UAC Group structure and enhance shareholder value, we completed the distribution of UPDC REIT units, attained 100% ownership of UAC Foods Limited, merged and fully integrated CAP PLC and Portland Paints and Products Nigeria PLC.”
