UAC of Nigeria Plc reported a decline in profit after tax for the period ended 31 December 2021, despite over 24% growth in revenue, according to the financial statements released by the company.
The company’s revenue grew by 24.3% to N101.11 billion. Revenue growth was recorded across all operating segments of the company.
Breakdown of revenue from each segments
Revenue from the Animal Feeds and Other Edibles segment increased 15.7% YoY to N62.7 billion in 2021 (2020: ₦54.2 billion).
The Paints segment reported revenue growth of 44.4% YoY to ₦15.1 billion in 2021.
The Packaged Food and Beverages segment recorded 33.0% YoY revenue growth to ₦23.8 billion in 2021 (2020: ₦17.9 billion).
Revenue from the Quick Service Restaurants segment (QSR) increased 44.9% YoY to ₦2.2 billion in 2021 (2020: ₦1.5 billion).
UAC’s gross profit in 2021 increased by 9.7% YoY to ₦17.5 billion and gross profit margin declined by 17.3%. UAC of Nigeria said that the “Margin compression was largely on account of input cost escalation across all businesses.”
Profit before tax was ₦4.6 billion, a decrease of 10.3% YoY against ₦5.1 billion in 2020.
Profit after Tax from continuing operations declined by 4.6% to ₦3.3 billion compared to ₦3.4 billion in 2020.
UAC’s total profit for the period ₦3.3 billion in 2021, a 16.1% decrease compared to ₦3.9 billion reported in 2020., largely due ₦470 million profit from discontinued operations in 2020 which impacts year on year comparison.
Earnings per share from continuing operations for 2021 was 83 kobo, 18.1% higher than the earnings per share from continuing operations of 70 kobo in 2020.
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Free Cash Flow for the period was negative ₦18.7 billion in 2021, compared with negative ₦3.0 billion in 2020. Free cashflow was impacted by the “strategy to increase inventory levels in the Animal Feeds segment and the Paints segments,” according to the company.
Breakdown of profit from each segment
The Animal Feeds and Other Edibles segment recorded a ₦1.2 billion Profit before Tax in 2021 compared to ₦1.7 billion Profit before Tax in 2020, impacted by “higher finance costs to support inventory purchases.”
The Paints segment profit before Tax was ₦1.5 billion in 2021, 4.1% higher than the ₦1.47 billion recorded in 2020.
The Packaged Food and Beverages segment profit before Tax increased by 5.3% to ₦1.5 billion (2020: ₦1.4 billion).
The Quick Service Restaurants segment recorded a ₦336 million Loss before Tax in 2021, against a ₦57 million Loss before Tax in 2020.
In 2021, UAC of Nigeria recorded loss from associate companies (UPDC Plc and MDS Logistics Limited) in 2021 versus a profit from associates in 2020.
On Monday, UAC’s share price declined by 1.11% to close at N8.90 per share. YTD the share price is down by 7.29%.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.