UAC Foods Plc has reported a significant decline in profit for the 2025 financial year, with a 39 per cent drop to N9.91 billion. The company's profit before tax also fell by 36 per cent to N16.43 billion, largely due to a sharp increase in finance costs. Despite this decline in profitability, the company recorded strong revenue performance, with turnover rising by 73 per cent to N340.47 billion. Operating profit grew by 51 per cent to N28.49 billion, indicating improved efficiency in core operations. The company's financial statements for the year ended December 31, 2025, were released to the Nigerian Exchange Ltd, providing insight into the company's performance.
Total equity increased by five per cent to N69.77 billion, while total equity and liabilities surged by 279 per cent to N597.06 billion. Cash and cash equivalents rose by 25 per cent to N50.91 billion. However, earnings per share declined by 27 per cent to 362 kobo. The company's market capitalisation rose by 189 per cent to N266.28 billion.
The decline in UAC Foods Plc's profit is a concern for investors, particularly given the significant increase in finance costs. With a net finance cost of N15.50 billion in 2025, compared to a net finance income of N5.96 billion in 2024, it is clear that the company's financial management needs to be reassessed. The fact that operating profit grew by 51 per cent to N28.49 billion suggests that the company's core operations are performing well, but the impact of finance costs is substantial. For everyday Nigerians, this decline in profit may not have an immediate impact, but it could affect the company's ability to invest in new projects and create jobs. The company's management needs to carefully consider its financial strategy to mitigate the effects of high finance costs and ensure sustainable growth.
