UAC of Nigeria Plc (“UACN”, “UAC” or “the Group”) has announced its audited results for the full year ended 31 December 2018.

Group Highlights

In million N, unless otherwise stated FY 2018 FY 2017 Var % Q4 2018 Q4 2017 Var %
Revenue 78,744 89,178 (11.7%) 22,982 20,898 10.0%
Gross Profit 14,044 15,957 (12.0%) 3,309 4,360 (24.1%)
Gross Profit Margin 17.8% 17.9% (5.8 bps) 14.4% 20.9% (646.6 bps)
Selling & Distribution Expenses 4,788 4,596 4.19% 1,035 1,421 (27.2%)
Administrative Expenses 7,099 7,086 0.2% 2,246 2,187 2.7%
Impairments/Other operating losses 8,909 959[1] n/m 7,291[2] 337 n/m
Operating Expenses (% of revenue) 26.4% 14.2% 1223.4 bps 46.0% 18.9% 2712.5 bps
Operating expenses ex impairments (% of revenue) 15.1% 13.1% 199.6 bps 14.3% 17.3% 298.5 bps
EBIT (5,311) 7,031 n/m (7,007) 1,378 n/m
EBIT Margin (6.7%) 7.9% n/m n/a 6.6% n/m
Finance Income 2,981 1,861 60.1% 927 517 79.2%
Finance Cost 4,988 6,185 (19.4%) 1,274 1,697 (24.9%)
Gross Interest Cover Ratio (1.06) 1.14 n/m (5.50) 0.81 n/m
Net Interest Cover Ratio (2.65) 1.63 n/m n/m 1.2  
Profit Before Tax (5,512) 3,246 n/m (5,996) 133 n/m
Profit Before Tax Margin (7.0%) 3.6% n/m (26.1%) 0.6% n/m
Net Profit from cont. ops. attributable to UAC shareholders (6,090) 956 n/m (6,250) (1,005) n/m
Annualised basic Earnings per share from cont. ops. (Kobo)[3] (207) 69 n/m (245) (46) n/m
LTM Return on average Equity -13.0% 1.3% n/m -13.4% -1.4% n/m
Working capital/ LTM revenue 30.9% 11.8% n/m 105.9% 50.3% n/m
Free Cash Flow (1,546) 5,899 n/m (1,546) 5,899 n/m
  Dec-2018 Dec-2017 Var %
Quick Ratio 0.87x 0.61x n/m
Current Ratio 1.52x 1.21x n/m
Gearing 32.6% 34.3% (176 bps)
Total Assets / Equity 1.77x 1.79x n/m

Commenting on the performance, Group Managing Director/Chief Executive Officer, Mr Folasope Aiyesimoju, stated:

Our immediate priorities are addressing the challenges relating to UACN Property Development Company Plc (“UPDC”) and implementing UACN’s transition to a lean holding company (“holdco”). UPDC recorded a loss after tax of N15.0 billion and does not generate sufficient recurring income to service its N18.6 billion in interest bearing liabilities. Management expects to present a solution to the challenges facing UPDC within the calendar year. Transitioning to a lean holdco entails greater focus on subsidiaries; we are strengthening subsidiary management teams to effectively compete in their segments.

……

** Please refer to the attachments for the full press release and the audited financial statements. **

For further information, please contact:

Ibikunle Oriola
Group Finance Director
ioriola@uacnplc.com
+2348035350719

Femi Ajaja
Group Finance
fajaja@uacnplc.com
+2348035431939

Notice of FY 2018 Conference Call

The senior management of UAC of Nigeria Plc (‘UAC’ or ‘the Group‛) will host a conference call for investors and analysts on Wednesday 17 April 2019 at 14:00 (Lagos)/ 14:00 (London) / 08:00 (New York)/15:00 (Johannesburg) to discuss the FY 2018 financial results and other business developments.

Details of the conference call will be circulated later.


[1] N725.3 million of FY 2017 impairments is primarily from UPDC

[2]Adjusting for Impairment of receivables in UPDC Joint Ventures, impairment on assets held for sale, mark to market losses on property, Loss on sales of Investment Property, as well as property, plant and equipment, and Net fair value loss on investment properties

[3]) Basic and diluted weighted average number of 2,570,476,583 shares in FY 2018 and 1,920,864,386 shares in FY 2017.