Q4 2023 Uac Of Nigeria PLC Earnings Call Transcript
Key Points
- Uac Of Nigeria PLC (NSA:UACN) recorded a 10% year-on-year increase in consolidated revenue, reaching NGN121 billion in 2023.
- The company achieved a significant turnaround in operating profit, recording NGN9.1 billion in 2023 compared to an operating loss of NGN2.4 billion in 2022.
- Uac Of Nigeria PLC (NSA:UACN) successfully launched a new brand, Kingsway Pastry Roll, which has performed well in the market.
- The company unlocked NGN9.2 billion through the sale of non-core assets, bolstering group liquidity.
- The Group's net finance income improved significantly, reaching NGN2.4 billion in 2023 compared to a net finance cost of NGN2.1 billion in 2022.
- Operating conditions in 2023 were challenging due to low growth, currency devaluation, foreign exchange scarcity, and high inflation.
- The animal feed and other edibles segment recorded only a modest 2% year-on-year revenue increase, largely driven by price increases to offset rising raw material costs.
- Operating expenses increased by 17% year-on-year, reflecting the impact of inflation and naira depreciation on expenses pegged to foreign currency.
- The quick-service restaurant segment faced significant cost escalations, particularly in energy costs, which slowed down the pace of expansion.
- The company expects economic conditions to remain difficult in 2024, with a focus on maintaining margins through supply chain efficiencies and proactive pricing.
(technical difficulty) UAC of Nigeria plc's full year 2023 results conference call. Please note that this call is being recorded.
This conference call will be hosted by Fola Aiyesimoju, the Group Managing Director of UAC of Nigeria PLC; and Funke Ijaiya-Oladipo, the Group Finance Director. Following prepared remarks by UAC's management team, there will be an interactive question and answer session. I will now hand the call over to Fola Aiyesimoju, please go ahead.
Thank you, Temitope, and good day all. I have lost my voice at the most inopportune time, but I will do my best to be audible, please turn to page 5.
For the financial year 2023, UAC recorded revenues and profit before tax of NGN120 billion and NGN12.3 billion, respectively. Our profits included one-off gains from asset divestments and our treasury portfolio. Over the course of today's presentation will provide color on the operating environment in 2023 discuss the initiatives
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