UAC of Nigeria Plc reported a robust income efficiency for the 12 months ended December 31, 2025, however posted a decline in revenue after tax as rising finance prices weighed on earnings.
Income grew by 73 p.c to ₦340.47 billion, up from ₦196.90 billion recorded in 2024 on the again of improved efficiency throughout its enterprise segments and stronger topline enlargement.
Working revenue elevated by 51 p.c to ₦28.50 billion from ₦18.87 billion, indicating improved operational effectivity and value administration on the core enterprise stage.
Nonetheless, the corporate recorded a pointy reversal in internet finance place, posting a internet finance price of ₦15.50 billion in comparison with a internet finance revenue of ₦5.96 billion within the earlier 12 months. This represents a 360 p.c destructive swing and stays the first driver behind the decline in profitability.
Because of this, revenue earlier than tax fell by 36 p.c to ₦16.43 billion from ₦25.55 billion in 2024, regardless of the sturdy development in income and working revenue.
After accounting for tax bills, revenue after tax declined by 39 p.c to ₦9.91 billion, in comparison with ₦16.31 billion recorded within the earlier 12 months.
Earnings per share dropped to 362 kobo from 497 kobo, indicating lowered returns to shareholders within the interval beneath evaluate.
On the stability sheet, whole property surged with whole fairness and liabilities rising by 279 p.c to ₦597.06 billion from ₦157.73 billion. This sharp improve suggests a serious enlargement within the firm’s asset base, doubtless pushed by acquisitions, revaluation, or consolidation actions.
Whole fairness rose modestly by 5 p.c to ₦69.77 billion, indicating restricted retained earnings development regardless of the enlargement in whole property.
Money and money equivalents elevated by 25 p.c to ₦50.91 billion from ₦40.59 billion, offering some liquidity assist amid rising monetary obligations.
Regardless of the decline in earnings, the corporate maintained a steady dividend payout of twenty-two kobo per share for the 12 months.
Nonetheless, it proposed a considerably larger dividend of 100 kobo per share, representing a 355 p.c improve, signaling administration’s confidence in future money flows and earnings restoration.
Market efficiency mirrored sturdy investor sentiment, with the corporate’s share worth rising to ₦91.00 (9,100 kobo) as of December 31, 2025, from ₦31.50 (3,150 kobo) in 2024. This drove market capitalisation up by 189 p.c to ₦266.28 billion.
Whereas UAC of Nigeria delivered sturdy income and working revenue development, the sharp improve in finance prices considerably impacted bottom-line efficiency.
The divergence between working energy and internet earnings highlights the significance of capital construction administration going ahead.
Buyers are anticipated to carefully monitor the corporate’s financing technique, debt ranges, and skill to maintain earnings development whereas managing price pressures in subsequent intervals.