How Major Segments of UAC of Nigeria Performed in the First 9 Months of 2025

A detailed breakdown of UAC of Nigeria PLC’s segment performance for Q3 and the first nine months of 2025 reveals stark contrasts across its business portfolio, with the Paints division emerging as the standout performer while Animal Feeds faced severe headwinds.

In its financial statements released on Thursday, the Paints segment delivered the strongest performance across UAC’s portfolio, recording revenue of ₦10.2 billion in Q3 2025, a 27% year-on-year increase from ₦8.0 billion in Q3 2024. For the nine months, Paints’ revenue reached ₦30.3 billion, up 28% from ₦23.7 billion.

Operating profit for the segment surged 32% to ₦1.6 billion in Q3 2025, while profit before tax jumped 36% to ₦1.7 billion compared to ₦1.3 billion in the same quarter last year. The nine-month profit before tax of ₦6.5 billion represented a robust 39.4% increase, driven by price adjustments, favourable product mix, and operational efficiency gains from recent investments in plant machinery and tinting equipment at colour centres.

The Packaged Food and Beverages segment demonstrated resilience with Q3 revenue of ₦17.0 billion, up 24.7% from ₦13.7 billion in Q3 2024. Nine-month revenue reached ₦56.9 billion, marking a 37.3% increase from ₦41.5 billion in the prior-year period.

The segment’s profit before tax rose 17% to ₦1.9 billion in Q3 2025, while nine-month PBT climbed 53.6% to ₦6.8 billion. The improved performance was attributed to volume growth, price adjustments, and top-line performance that offset rising operating expenses.

Following the 3 October 2025 completion of the acquisition of C.H.I. Limited, UAC now owns two major businesses in this sector – UAC Foods Limited and the newly acquired Chivita | Hollandia – positioning the company as a dominant player in Nigeria’s packaged food and beverage market.

The Animal Feeds and Edibles segment experienced the most significant challenges, with Q3 2025 revenue plummeting 25.4% to ₦21.4 billion from ₦28.7 billion in Q3 2024. The segment swung to an operating loss of ₦570 million, compared to an operating profit of ₦3.0 billion in the prior-year quarter.

For the nine months, revenue declined 3.4% to ₦70.6 billion, while the segment recorded a loss before tax of ₦2.8 billion, a dramatic reversal from the ₦2.0 billion profit in 9M 2024.

The company attributed the poor performance to decreased sales volume and the underperformance of feed-mill initiatives amid sharp declines in agricultural commodity prices. The segment faced particular pressure as maize and soya beans – critical inputs for feed production – were purchased at weighted average costs of ₦417 and ₦420, respectively, significantly below market prices. This created downward pressure on finished-feed prices and reduced inventory valuations.

The Quick Service Restaurants (QSR) segment grew revenue by 19% to ₦644 million in Q3 2025, but it recorded an operating loss of ₦217 million compared to a ₦188 million loss in Q3 2024. The segment’s loss before tax widened to ₦371 million from ₦293 million.

For the nine months, QSR revenue declined 16.8% to ₦1.9 billion, with losses before tax reaching ₦1.2 billion. The company noted that elevated input and operating costs, coupled with cost of sales that more than doubled and high fixed overheads relative to current sales, continue to challenge the segment’s profitability.

UAC’s associate company, UPDC (41.9% ownership), recorded a 34% revenue increase to ₦3.3 billion in Q3 2025, driven by property sales from the Brompton City development in Lekki, Lagos, and increased revenue from UPDC Hotel and Facility Management services. However, profit before tax fell to ₦497 million from ₦537 million in Q3 2024.

MDS Logistics (43% ownership) demonstrated strong momentum, with revenue increasing 44% to ₦2.1 billion in Q3 2025, primarily driven by the onboarding of 200 new trucks for FMCG customers. The logistics arm’s profit before tax nearly tripled to ₦643 million from ₦178 million, reflecting improved margins and operational scale benefits.

The divergent segment performances underscore UAC’s diversified business model, with strength in Paints and Packaged Food offsetting significant challenges in Animal Feeds. The successful integration of C.H.I. Limited is expected to further strengthen the company’s position in the high-growth packaged food and beverages sector, while management works to stabilise the troubled Animal Feeds business amid volatile commodity markets.