UAC of Nigeria Plc has released its condensed consolidated statement of profit or loss and other comprehensive income for the period ended 30 June 2021.
The company recorded a 26.9% growth in revenue to N46.5 billion. The Profit after Tax from continuing operations was ₦765 million, an increase of 258% YoY.
Income statement
Revenue in H1 2021 increased 26.9% YoY to ₦46.5 billion from N36.63 billion in H1 2020.
The growth in revenue was supported by sales growth across all operating segments of the company – Animal Feeds and other Edibles; paints; Packaged Food & Beverages and Quick Service Restaurants.
Revenue from the Animal Feeds and Other Edibles segment increased 13.4% YoY to N28.3 billion in H1 2021 (H1 2020: ₦24.9 billion) on account of higher YoY sales across poultry (+12%), and fish feed (+53%) categories.
The segment recorded a ₦521 million Profit before Tax in H1 2021, against a ₦10 million Loss before Tax in H1 2020.
The Paints segment reported revenue growth of 59.4% YoY to ₦6.8 billion in H1 2021. Revenue growth, which was recorded in all paint categories except the industrial category, was on account of increased volumes (+55% YoY).
Profit before Tax from the paint segment was ₦763 million in H1 2021, 7.7% lower than the ₦826 million recorded in H1 2020.
The Packaged Food and Beverages segment recorded 45.5% YoY revenue growth to ₦11.9 billion in H1 2021 (H1 2020: ₦8.2 billion) as a result of double-digit volume growth across all categories (snacks, spring water, and ice cream).
The segment’s Profit before Tax increased by 51.6% to ₦759 million (H1 2020: ₦501 million).
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Revenue from the Quick Service Restaurants segment grew 62.0% YoY to ₦1 billion in H1 2021 from ₦625 million in H1 2020 due to growth in sales of company-owned restaurants (corporate stores) and central kitchen, as well higher royalties from franchisees on account of improved sales and collections.
UAC Restaurants segment recorded a ₦56 million Loss before Tax in H1 2021, against a ₦61 million Loss before Tax in H1 2020.
UAC’s Gross profit in H1 2021 increased by 19.0% YoY to ₦8.3 billion and gross profit margin declined 119 basis points to 17.9%.
According to the company, margin compression was largely on account of impact of input cost escalation in Paints, Packaged Food and Beverages, and Quick Service Restaurants segments as well as lower Paints sales in Q1 2021, a direct result of supply chain disruptions and availability of key raw materials which impacted production in the first quarter of the year.
The company’s operating profit was ₦1.7 billion in H1 2021, 105.4% higher than the ₦828 million recorded in H1 2020. Revenue growth and higher other income (+75.8% YoY), partly attributable to profit on sale of land by CAP PLC, offset higher operating expenses (+ 9.5% YoY).
The group’s finance cost increased to N674.69 million on account of short-term borrowings in Animal Feeds and Other Edibles segment, according UAC.
The Profit before tax was ₦1.3 billion, an increase of 25.3% YoY against ₦1.0 billion in H1 2020.
Profit after Tax from continuing operations was ₦765 million, an increase of 258% YoY against ₦214 million in H1 2020.
Total profit for the period was ₦763 million in H1 2021, a 34% decline from the ₦1.2 billion reported in H1 2020. UAC recorded ₦944 million profit from discontinued operations in H1 2020 which impacted year on year comparison.
Earnings per share from continuing operations for H1 2021 was 5 kobo, an improvement from the loss per share from continuing operations of 7 kobo in H1 2020.
Balance sheet
The total assets increased to N101.13 billion from N92.17 billion as at 31 December 2020. Current assets represents 58.87% of the company’s total assets.
Similarly, the total liabilities increased to N43.37 billion from N30.79 billion. Current liabilities represent 84.95% of the total liabilities.
Bank overdrafts and current portion of borrowings surged to N15.77 billion in H1 2021 from N2.5 billion as at the end of 2020.
Total equity declined to N57.76 billion due to the decrease in retained earnings to N29.4 billion from N32.71 billion.
Free Cash Flow for the period was negative ₦15.1 billion in H1 2021, compared with positive ₦239 million in H1 2020.
Annualised Return on Equity (ROE) from continuing operations in H1 2021 was 0.6%, 305 basis points lower than H1 2020 (3.7%).
Annualised Return on Invested Capital (ROIC) was 299 basis points higher at 5.2% (H1 2020: 2.2%).
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
