UAC Nigeria Posts N34.45bn H1 Profit, Up 210% on CHI Acquisition, Shares Double
UAC of Nigeria Plc reported a profit before tax of N34.45 billion for the six months ended 30 June 2026, a 210.3% jump from N11.10 billion in the same period of 2025. The surge was driven by the consolidation of C.H.I. Limited, which boosted revenue to N364.97 billion – up 230.6% year‑on‑year – with the Packaged Food & Beverages segment contributing over 84% of total sales. Earnings per share rose to 658 kobo, up 176.5%, and the share price closed at N182.10 on the NGX on 29 July 2026, double its end‑2025 level. While operating profit jumped to N48.97 billion, finance costs rose sharply to N26.83 billion, though cash held steady around N50 billion despite borrowings above N300 billion. The results underline how the CHI acquisition has reshaped UAC’s earnings base toward fast‑moving consumer goods, but also highlight the group’s growing leverage.
Given the stark profit surge alongside rising debt, should you view UAC’s current valuation as a buying opportunity on the back of strong FMCG growth, or caution against the heightened leverage and financing costs?