The 2007 financial results of uac of Nigeria plc has confirmed that the strategic re-focusing of the conglomerate is resulting in positive financial indices.
This follows a review of the audited group financials which shows strong operating profit growth at 40% over 2006 levels. In addition, profit before tax crossed the N5 billion mark from N3.8 billion in 2006; a growth of 28.5%.
This performance vindicates investors who have grown uac's share price by 98% over the period and who would be rewarded with unprecedented dividend growth of 70%.
Upon assuming office in January 2007 as Group Managing Director/Chief Executive Officer of uac of Nigeria Plc, Larry Ephraim Ettah had restructured the food business sector of the conglomerate. The goal of that new management team was to grow the company into the leading food focused conglomerate in Nigeria with market dominance in all categories it chooses to play.
The operating result reflects the early effects of the strategic transformation of uac into a focused conglomerate and is an endorsement of its new leadership.
Not only are the figures for 2007 impressive, the un-audited first quarter 2008 results also confirmed the positive trend.
According to the financial results, operating profit, profit before tax and the profit after tax for the quarter are over the equivalent period in 2006 by 50%, 68% and 68% respectively.
Reflecting on the results, Ettah said: “it is significant that turnover from franchise operations, which is not reflected in uac Group accounted for N1.8 billion in the quarter supporting a conservative projection of N7.5 billion to N10 billion turnover from franchisees in 2008.
The implication is that uac is growing its market presence in an efficient manner through the franchising model”.
“The surefootedness of a clear strategy and strong focus on operational excellence ensured the company broke its traditional dependence on profit from extraordinary items.
The double digit growth in revenue (despite increasing contribution of franchising to restaurants sales and footprint) alongside strong earnings, validates our strategy and shows that the business model of the group now has integrity.
uac, as it now stands, is a more compelling company with strong future prospects and strategic opportunities. We are positioned to exploit our scale and scope and are better organised to grow and also defend our leading market positions”.
Last August, uac launched a new corporate identity and the Goodness League initiative, which forms the plank of its Corporate Social Responsibility thrust hinging on a pro-active interventionist agenda in the public educational sector
