UAC of Nigeria posts $10 million Q1 profit as CHI boosts revenue under Fola Aiyesimoju

UAC of Nigeria Plc, a diversified consumer and industrial group led by Nigeria’s youngest dealmaker, Folasope Aiyesimoju, opened 2026 with a strong record quarterly performance.

The Lagos-based group delivered a profit of nearly $10 million as revenue more than tripled, underscoring early gains from its largest deal in recent years, the acquisition of C.H.I. Limited from The Coca-Cola Company, and signaling a strategic shift toward higher-margin consumer goods.

Profit jumps over 300% as revenue triples

UAC’s profit rose 311.39% year-on-year from N3.32 billion ($2.41 million), while revenue climbed 241.45% to N161.09 billion ($117.2 million), underscoring the earnings impact of its expanded portfolio. Operating profit surged more than fourfold to N28.4 billion ($20.66 million), supported by improved cost efficiency and stronger margins. 

Gross profit reached N54.8 billion ($39.83 million), with margins increasing to 28.7%, driven by pricing adjustments and a more favorable product mix. The performance marks a strong start to 2026 as the group consolidates its newly acquired beverage business while scaling core operations.

C.H.I. integration powers core business expansion 

The packaged food and beverages segment emerged as the primary growth engine, with revenue rising more than eightfold to N161.09 billion ($117.2 million). The jump reflects the full consolidation of C.H.I., known for brands such as Chivita and Hollandia. 

The paints division also delivered steady growth, with revenue increasing 15% to N11.59 billion ($8.43 million), supported by improved product availability and pricing. However, performance was uneven across the portfolio. 

The edibles and feed segment recorded a 31% decline due to pricing pressures in agricultural commodities, while the quick service restaurant unit, anchored by Mr Bigg’s, remained loss-making despite cost controls.

Strategy and execution under Aiyesimoju 

Commenting on the results, Group Managing Director Fola Aiyesimoju said the group’s focus remains on integrating C.H.I., improving margins, and optimizing working capital. “Our results reflect the consolidation of C.H.I.’s performance and continued strength across our core businesses,” he said, noting revenue grew 3.4 times while profit before tax increased 4.5 times. The strategy centers on scaling higher-margin segments while addressing underperforming units, particularly in quick service restaurants and agriculture-linked operations.

Assets steady as retained earnings jump under Aiyesimoju’s post-acquisition strategy

UAC of Nigeria Plc, one of the country’s oldest conglomerates, operates across packaged food and beverages, paints, animal feeds, and quick service restaurants, with flagship brands spanning Gala, Chivita, Hollandia, Dulux, and Mr Bigg’s. Listed on the Nigerian Exchange, the group has deep roots in Nigeria’s consumer and industrial landscape, with a growing footprint driven by strategic acquisitions and portfolio optimization. 

Aiyesimoju holds 743.08 million shares in UAC of Nigeria Plc, giving him a 25.36% stake in the diversified conglomerate with interests across four core sectors. This indirect stake is currently worth N134.87 billion ($97.92 million) as of report writing.

On the balance sheet, the Lagos-based group reported largely stable assets, which edged up 0.09% year-on-year to N597.61 billion ($434.65 million). In contrast, retained earnings posted a strong increase, climbing 24.62% to N66.52 billion ($48.38 million) from N53.38 billion ($38.83 million), reflecting improved profitability and earnings accumulation.

Why this matters 

UAC’s performance highlights a broader consolidation trend in Nigeria’s consumer goods sector, where scale and brand strength are becoming critical to margin expansion. The acquisition of C.H.I. from Coca-Cola signals increasing deal activity involving multinational divestments to local operators, similar to shifts seen across Africa’s fast-moving consumer goods market.

For investors, the results demonstrate how strategic acquisitions can rapidly transform earnings profiles, particularly in high-demand segments like beverages and packaged foods. The growth also reflects resilience in Nigeria’s consumer market despite inflationary pressures, positioning UAC as a key player in the country’s evolving retail and manufacturing landscape.