UAC records N4.7bn loss amid high operating cost

UAC of Nigeria PLC (UAC) has recorded N4.7 billion loss in the full year of 2022, no thanks to high operating costs.

Checks on the company’s financial statement submitted to the Nigerian exchange show the loss recorded came on the back of N2.58 billion profit in the same period of 2021.

The Food and Beverage company with a portfolio in real estate and paint and logistics sectors of the economy said during the 12 months of 2022, running a business at N17.35 billion in expenses a 17% increase from N14.84 billion in the full year of 2021.

Commenting on the results, Fola Aiyesimoju, group managing director, UACN stated: “Our profitability was negatively impacted by losses in our animal feeds segment, which more than offset contributions from other segments.

“Our businesses grappled with escalating costs particularly energy, distribution, and finance costs which negatively impacted performance. Tighter working capital management resulted in N10.7 billion free cash flow across the UAC Group. We will execute growth initiatives with caution until macroeconomic conditions improve,” Aiyesimoju said.

Selling and distribution expenses surged 33.4 percent to N8.46 billion in the full year of 2022 from N6.34 billion in the full year of 2021.

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On a quarter-on-quarter basis, selling and distribution expenses grew 26 percent to N2.27 billion in December 2022 from N1.8 billion in December 2021.

Administrative expenses climbed 4.7 percent to N8.9 billion in the full year of 2022 from N8.5 billion in the full year of 2021.

On a quarter-on-quarter basis, administrative expenses dipped 5 percent to N2.41 billion in December 2022 from N2.54 billion in December 2021.

Revenue grew 7 percent to N109.2 billion in the full year of 2022 from N101.37 billion.

UAC of Nigeria’s revenue from animal feeds & other edibles contributed N63.4 billion, while packaged food & beverages(N23.24 billion), paints(N19.2 billion), quick service restaurants(N3.07 billion), and others(297.4 million).

The cost of sales also climbed 13.5 percent to N94 billion in the full year of 2022 from N82.8 billion in the full year of 2021.

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