UAC posts ₦37.7bn pre-tax profit in nine months, shares up 99% YTD
UAC of Nigeria delivered a blockbuster nine months to September 2026, with pre-tax profit surging 262.5% to ₦37.69 billion from ₦10.40 billion a year earlier. Revenue more than tripled to ₦523 billion, driven by the October 2025 acquisition of C.H.I. Limited, which now anchors the Packaged Food and Beverages segment generating ₦436.2 billion (83% of group turnover). Q3 alone flipped to ₦3.25 billion pre-tax profit from a ₦703 million loss in Q3 2025.
The transformation shows in the margins: gross margin improved to 27.3% from 24.7%, operating margin to 11.4% from 8.4%. Cash generation exploded—₦113.16 billion from operations, free cash flow ₦98.44 billion—funding aggressive debt reduction. Total borrowings fell 23.8% to ₦262.63 billion, net debt down ₦62.8 billion to ~₦231 billion, and net debt-to-EBITDA collapsed to 2.2x from 5.9x. UAC is also selling its 43% stake in DP World Logistics and 73.29% of Livestock Feeds, both subject to regulatory approval.
Edibles & Feed revenue dropped 27.4% to ₦51.3 billion on weak agri-commodities, while Quick Service Restaurants dipped 3.4%. Paints grew 11.3% to ₦33.69 billion on 21% volume growth after the Sandtex Select relaunch.
Investors have noticed: the stock closed at ₦181 on October 30, up 98.9% year-to-date from ₦91, though it traded flat across the last ten sessions as the market digests the results.
With deleveraging ahead of schedule and divestments pending, does UAC now represent a turnaround play or a fairly valued conglomerate?