2023 Q2: UAC reports forex gains of N3.5 billion, contributes 87.5% of profits

UAC Pls released its 2023 half-year earnings showing pre-tax profits of N4 billion versus a pre-tax loss of N966 million same period last year.

The second quarter’s performance helped boost profitability in the first half of the year to N3.1 billion.

Key highlights Second Quarter 2023

  • Revenue N28.2 billion +15.9% YoY
  • Operating profit N665 million va -N257 million YoY
  • Net Finance Income N2.9 billion vs -N630 million yoY
  • Pre-tax profits N4 billion versus N966 million loss YoY
  • Earnings per share 83 kobo versus a loss of 46 kobo YoY
  • Gross Margin 18.9% vs 15.8% YoY
  • Opex as %age of Gross Profit 87.5% vs 106.5% YoY
  • Total debt N18 billion flat from the previous quarter.
  • Cash and cash equivalents N14.9 billion

Insights – UAC’s performance benefitted from a boost in finance income which essentially was the reason for the profitability.

  • During the quarter it reported an exchange rate gain of N3.5 billion which helped it turn a profit.
  • When adjusted for the exchange rate gain, the company result would have swung into losses.
  • In terms of segment reporting, its QSR, Animal feeds & Other edibles businesses reported and operating loss. However, the pain business, packaged foods, and beverages businesses posted profits.

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