UACN revenue surges 228% in nine‑month 2026 results

UACN revenue exploded to N523 billion for the nine‑month period ending 30 September 2026, a 228 percent increase from the same stretch a year earlier, the conglomerate disclosed on Monday. The surge was accompanied by a dramatic rise in profitability, with operating profit climbing 344 percent to N60 billion and profit before tax soaring 263 percent to N38 billion. Group managing director Fola Aiyesimoju said the performance reflected “continued progress against our objectives” and highlighted the role of the packaged food, beverages and paints divisions in driving the growth.

The financial release covered both the third quarter and the cumulative nine‑month results. Gross profit for the period rose 262 percent to N143 billion, while the nine‑month profit after tax more than quadrupled to N21.912 billion, up from N5.383 billion recorded in the corresponding period of 2025. Aiyesimoju pointed to strong cash generation as a key factor, noting that free cash flow reached N98 billion thanks to working‑capital releases and disciplined cost management.

In addition to the headline numbers, the company announced strategic moves aimed at reshaping its portfolio. During the quarter UACN entered into agreements to sell its shareholdings in Livestock Feeds Plc and DP World Logistics Limited, pending regulatory clearance. The divestments form part of a broader plan to deleverage the balance sheet and concentrate on higher‑margin businesses. “We remain focused on implementing our plan to drive value creation, including the completion of the announced divestments and continued deleveraging,” Aiyesimoju said.

Analysts observing the release noted that the pace of revenue growth, more than three‑fold, is unusual for a mature conglomerate in Nigeria’s consumer market. The packaged food and beverages segment, which includes well‑known brands across the country, benefitted from both price‑adjustments and increased distribution reach. Meanwhile, the paints business rode on a construction boom in the southern and western regions, where housing projects and infrastructure upgrades have lifted demand for decorative and industrial coatings.

The earnings jump also reflects broader macro‑economic trends. Despite inflationary pressures and foreign exchange volatility, consumer spending on staple foods and home improvement products has shown resilience. UACN’s ability to pass on cost increases while maintaining volume growth helped protect margins. Moreover, the company’s disciplined approach to working capital, releasing cash tied up in inventory and receivables, contributed to the robust free cash flow figure, which management described as “strong”.

The announcement of the two divestments signals a shift in UACN’s strategic focus. Livestock Feeds Plc, a player in the animal nutrition sector, has been underperforming relative to the group’s core consumer businesses. DP World Logistics Limited, meanwhile, operates in a logistics niche that the conglomerate believes can be better served by specialised operators. By shedding these assets, UACN expects to reduce debt and free up capital for reinvestment in higher‑growth areas such as food processing, beverage bottling and paint manufacturing.

Stakeholders reacted positively to the results. Shareholders in the company’s publicly listed units saw their holdings appreciate on the back of the earnings release, while creditors noted the improvement in cash flow as a sign that the firm is on a sustainable path. The Nigerian Securities and Exchange Commission has yet to comment on the pending divestments, but regulatory approval will be a prerequisite before the sales can be completed.

The performance also has implications for the broader corporate landscape in Nigeria. UACN’s results may encourage other diversified groups to reevaluate their asset bases and consider similar moves toward simplification and deleveraging. In a market where access to affordable financing remains a challenge, generating free cash flow and reducing leverage are often seen as prerequisites for long‑term stability.

Looking ahead, the group’s next steps involve finalising the sales of its stakes in Livestock Feeds and DP World Logistics, securing the required approvals, and reinvesting the proceeds into its core businesses. Aiyesimoju indicated that the company will continue to monitor market conditions closely, especially currency fluctuations that could affect import‑dependent inputs for its food and paint lines. The management team also plans to explore further efficiency gains across the supply chain to sustain the momentum built in 2026.

The nine‑month financial snapshot show a period of rapid expansion for UACN, driven by strong demand in its key consumer segments and a clear strategic intent to streamline the group’s portfolio. As the regulatory process for the announced divestments unfolds, investors and industry observers will be watching to see whether the cash generated can be redeployed effectively to maintain growth and improve the company’s capital structure.