UAC of Nigeria Plc (NGX – UACN) is a holding company with subsidiary and associate companies operating in the Animal Feeds and Other Edibles; Paints; Packaged Food and Beverages; Quick Service Restaurants; Logistics and Real Estate segments. The company is focused on building its businesses into leaders in their chosen segments.
Animal Feeds and Other Edibles
UAC of Nigeria Plc owns 71.4% of Grand Cereals Limited, a leading producer of cereals, edible oils, poultry feed, fish feed, ruminant feed and dog food. The company has production and distribution facilities in Northern and South Eastern Nigeria. It owns a portfolio of strong brands including Grand, Vital, and Best Mate.
UAC of Nigeria Plc owns 73.0% of Livestock Feeds Plc. The company produces and distributes poultry feed, feed concentrates and full fat soya. Livestock Feeds Plc recently expanded its offering to include veterinary drugs. Livestock Feeds’ geographic strength is in South West Nigeria. The company is listed on The Nigerian Exchange (NGX – LIVESTOCK).
LIVESTOCK has 3 billion outstanding shares and a market capitalization of N5.76 billion. The equity price closed flat at N1.92 per share on Friday. Year to date the share price is up 38.13%.
Paints
UAC of Nigeria Plc owns 51.5% of Chemical and Allied Products Plc (NGX – CAP). CAP Plc is a leading player in the premium paints segment and the sole technology licensee for AkzoNobel’s decorative range in Nigeria. The company benefits from a unique distribution model – franchised retail outlets, which it pioneered in Nigeria’s paint industry.
CAP Plc has 700 million outstanding shares and a market capitalization of N15.54 billion. The equity price closed flat at N22.2 per share on Friday. Year to date the share price is up 10%.
UAC of Nigeria Plc also owns 85.98% of Portland Paints and Products Nigeria PLC (NGX – PORTPAINT). The company is a distributor for Hempel’s industrial products in Nigeria. It also manufactures and markets decorative and industrial paints under its own brand, Sandtex.
PORTPAINT has 793.42 million outstanding shares and a market capitalization of N2.174 billion. The equity price closed up 5.38% at N2.74 per share on Friday. Year to date the share price is up 11.38%.
Portland Paints and Products Nigeria Plc and CAP Plc has agreed to merge their respective businesses, with CAP emerging as the resultant entity. The Scheme will involve the transfer of all Portland Paints’ assets, liabilities and business undertakings including real property and intellectual property rights to CAP Plc.
Read also: Q1 2021: UAC of Nigeria Plc reports 42% drop in profit from continuing operations
Packaged Food and Beverages
UAC of Nigeria Plc owns 51% of UAC Foods Limited, a joint venture business with Tiger Brands and leader in the snacks, ice-cream, and spring water categories. It owns iconic brands including Gala, Funtime, Supreme and SWAN Spring Water.
Quick Service Restaurants
UAC of Nigeria Plc owns 51% of UAC Restaurants Limited, a joint venture with Famous Brands, manages the network of Quick Service Restaurants across Nigeria under the Mr Bigg’s and Debonairs Pizza brands.
UAC of Nigeria Plc owns minority stakes in Logistics and Real Estate businesses Logistics.
It owns 43% of MDS Logistics Limited – a leading logistics provider in Nigeria, offers the complete suite of outbound logistics and supply chain services including Warehousing, Haulage and Distribution.
Real Estate
UAC of Nigeria Plc owns 42.9% of UPDC Plc (NGX – UAC-PROP), a foremost property development and management company quoted on NGX.
UAC-PROP has 18.62 billion outstanding shares and a market capitalization of N13.92 billion. The equity price closed down at 6.25% at N0.75 per share on Friday. Year to date the share price is down 5.06%.
It also owns 24.3% of UPDC Real Estate Investment Trust (NGX – UPDCREIT), a close-ended property fund listed on NGX.
UPDCREIT has 2.668 billion outstanding shares and a market capitalization of N14.94 billion. The equity price closed flat at 5.38% at N5.6 per share on Friday. Year to date the share price is up 1.82%.
On 31 March 2021, UAC announced the decision of the Board of Directors to unbundle the Company’s 24.34% interest in UPDC Real Estate Investment Trust (UPDC REIT) to UAC’s shareholders. The transfer of UPDC REIT units to UAC’s shareholders will be implemented through a Scheme of Arrangement under Section 715 of the Companies and Allied Matters Act, 2020 as amended (CAMA) incorporating a reduction in share capital under Section 131 of CAMA. The proposal is subject to the review and approval of regulators, UAC shareholders at a court-ordered meeting, as well as the sanction of the court.
UAC of Nigeria Plc saw its profit after tax dip by 41.7% in the first quarter of 2021 despite recording a 12.7% rise in revenue within the period.
Revenue grew by 12.7% to ₦22.0 billion in Q1 2021, from N19.55 billion in Q1 2020, driven by sales growth in the Animal Feeds & Other Edibles segment and the Packaged Food & Beverages segment.
UACN has 2.881 billion, outstanding shares and a market capitalization of N29.677 billion. The equity price closed 2.83% down at N10.30 per share on Friday. Year to date the share price is up over 40%.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
