UACN’s 2025 CHI Restricted Acquisition: The gamechanger within the 2025 outcomes  

UAC of Nigeria PLC (UACN) not too long ago launched its 2025 outcomes, and whereas the numbers may elevate some eyebrows, a 71% drop in revenue earlier than tax and EPS falling to 29 kobo, the story is much from over.

Beneath the floor lies a strategic acquisition that would reshape the corporate’s future: the acquisition of CHI Restricted.

In the ultimate quarter of 2025, UACN accomplished the acquisition of CHI Restricted, a frontrunner in Nigeria’s packaged meals and beverage sector.

With iconic manufacturers like Hollandia and Chivita now below its belt, UACN has tremendously strengthened its place within the quickly rising meals and beverage market. Group Managing Director Mr. Fola Aiyesimoju acknowledged,

“The acquisition of C.H.I. Restricted has considerably broadened UACN’s working base, including main client manufacturers similar to Chivita, Hollandia, and Capri-Solar, whereas SuperBite and Beefie have additional strengthened the Group’s snacks portfolio. The transaction has additionally deepened management and operational capability throughout the Group.”

The Good and Unhealthy of the Acquisition 

The acquisition got here with a hefty price ticket of N182.4 billion, and as with all main transaction, there are rising pains. The rapid results of this acquisition was a surge in income.

• The Packaged Meals & Drinks phase jumped by 252.45% to N204.54 billion, contributing 60% of complete income in 2025, in comparison with 29% in 2024.
•  Nonetheless, it’s not all clean crusing. With such a big acquisition got here substantial debt and curiosity bills, which pushed UACN’s revenue earlier than tax down by 71%.
•  The EPS dropped to simply 29 kobo, signaling that whereas the corporate is rising, it’s additionally feeling the stress of financing such a big deal.
•  Equally, the curiosity protection ratio, which measures an organization’s capacity to cowl curiosity funds from its working revenue, slipped from 3x in 2024 to simply 1.1x in 2025, indicating that servicing the debt has develop into more difficult.

That mentioned, UACN’s working revenue remained sturdy sufficient to soak up the further curiosity prices.

At each the high and mid-levels, revenue progress confirmed resilience. Whereas gross revenue grew by 64%, working revenue nonetheless elevated by 14%, demonstrating the corporate’s capacity to preserve profitability regardless of rising monetary stress.

• This reveals that the core enterprise is stable, and the acquisition is more likely to repay sooner or later.
•  Moreover, the corporate has lined up a long-term refinancing technique, together with a 7-year Naira mortgage and a N150 billion bond program, which ought to ease the monetary pressure transferring ahead.

For Traders: Endurance is vital 

UACN seems to be in a transition section, coping with the short-term fallout of its daring acquisition of CHI Restricted.

Nonetheless, there are causes for optimism. With EPS at 29 kobo and the present market worth, UACN’s valuation may appear overstretched at first look.

The acquisition might have stretched the corporate’s funds in 2025, but it surely may grow to be a strategic transfer that yields vital rewards in the long term. As Mr. Aiyesimoju famous,

• “2025 was a pivotal 12 months for UACN. The acquisition of C.H.I. Restricted considerably expanded our portfolio, strengthening each our market place and earnings base. 
• Waiting for 2026, we’re well-positioned to unlock worth from this expanded portfolio and ship long-term worth to shareholders.” 

That’s good, however transferring ahead, in addition, the corporate should sort out its overhead bills, which consumed over 76% of gross revenue in 2025.

• Which means for each N100 in income, solely N6 was left after masking these prices.
•  It is a vital problem that should be addressed as a part of UACN’s technique for sustainable progress and return to shareholders.

Whereas UACN has been constant in dividend funds,  2025 efficiency suggests that the corporate might prioritize progress and sustenance over rapid returns to shareholders.

Final 12 months, the inventory gained 189% YtD, closing at N91, and to date in 2026, it has moved as much as N92.30, reflecting a 1.43% YtD acquire.

The way it performs going ahead will rely on subsequent quarterly outcomes and the profitable integration of CHI Restricted.

For our inventory suggestions, extra insightful market evaluation, go to www.ftm.ng