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IMPROVED EFFICIENCY LIFTED UACN IN FIRST HALF
August 09, 2007

UAC of Nigeria (UACN) Plc witnessed significant growth in profitability in the first half as improved business efficiency magnified marginal growth to sales to better returns to shareholders.

Interim report and accounts of the conglomerate for the first half ended June 30, 2007 showed that pre-tax profit rose by 62% as against 5.97% growth in sales. The jumpy growth in profitability reflected better cost management and operational efficiency as pre-tax profit margin stood at 14.8% in first half of 2007 compared with 9.7% in corresponding period of 2006.

The report showed that turnover rose from N13.4 billion in 2006 to N14.2 billion in 2007. Profit Before Tax increased to N2.1 billion in 2007 as against N1.3 billion in 2006 while profit after tax rose by 59% from N944 million in 2006 to N1.5 billion in 2007. Extraordinary items however, pruned net earnings to N1.1 billion in 2006, representing an increase of 25%.

Mr. Larry Ettah, Group Managing Director, UAC of Nigeria Plc (UACN) has said that the conglomerate would delight shareholders with impressive financial results and return in the current business year as the company continues to consolidate its strategic investments in key growth areas.

He said the company has set high targets for itself this year and has begun implementing necessary initiatives to ensure the achievement of these targets.

He outlined that the focus of management would be ensuring impressive simultaneous growths in gross revenue and profitability to make sure the gains of the business development drives reach shareholders.

According to him, the company is focusing its investments in areas with significant revenue growth opportunities in order to be in a position to drive overall performance and ensure that returns are not only adequate but sustainable.

He said the conglomerate has made significant carpet investments in the flavoured and milk yogurt, ice cream, cereal and restaurant business. He said the conglomerate has invested more than N1 billion in flavoured and milk yogurt factory that would commence operation before the end of the current business year.

Ettah said the conglomerate has taken note of diversification by Nigerian farmers into fish farming and would soon launch a world-class brand that would provide fish farmers with necessary input.

He added that the company has embarked on expansion of its property profile as well as renovation and remodeling of its restaurants to meet varying demand of customers.

Culled from Financial Standard, Thursday, 9 th August, 2007 (Capital Market) page 40 Article was written by Taofik Salako