The shares of UAC of Nigeria Plc (UAC) have seen remarkable demand since the company’s disclosure that it has entered into an agreement to acquire Chivita|Hollandia (CHI Limited) from The Coca-Cola Company. The stock had reached a 52-week high of N97.1 as against a 52-week low of N16.6. In early trading on Tuesday, it reached N106.8. On Wednesday, July 30, when the company announced its acquisition of Chivita, the stock was priced at N73. It implies that within four days, it has risen by over 37 percent because in early trading on Tuesday, August 5, the stock crossed N100 per share.
On July 30, investors traded 2,985,270 shares of UAC, and the stock closed that day at N73. On Thursday, July 31, UACN rallied to close at N80.3 while its 1,592,221 shares were traded. Also, on August 1, the stock moved further high to N88.3 while 3,527,891 shares were traded. The stock drove the NGX-ASI to a positive start to the new week after closing on Monday, August 4, at N97.1 per share, while 3,190,063 units were traded on the Nigerian Bourse.
Last 7 Days Trades
UAC of Nigeria Plc is a holding company with subsidiary and associate companies operating in the Edibles and Feed; Paints; Packaged Food and Beverages; Quick Service Restaurants; Logistics and Real Estate segments. UAC has played a prominent role in Nigeria’s development for over a century. The company is focused on building its businesses into leaders in their chosen segments.
Though for a yet-to-be disclosed amount, UAC has acquired Chivita|Hollandia (CHI Limited), a leading food and beverage player in Nigeria, with a portfolio across value-added dairy products, juices, nectars, still drinks, and snacks.
The Hollandia brand is the market leader in evaporated milk and drinking yoghurt, while the Chivita brand is the market leader in fruit juice. This transaction, which is subject to regulatory approval, marks a strategic milestone in UAC’s growth agenda, expanding its presence in Nigeria’s fast-moving consumer goods sector. It supports The Coca-Cola Company’s strategy to operate a flexible and asset-light model and focus on brands that have the greatest potential to scale.
Read also: UAC shares hit 52-week high on Chivita acquisition
The Coca-Cola system recently announced it will invest $1 billion in Nigeria over five years and remains committed to these investments, provided a predictable and enabling environment is in place. This investment underscores the importance of Africa as a long-term growth opportunity for the Coca-Cola system.
At the Annual General Meeting (AGM) of UAC of Nigeria Plc held on June 4, 2025 in Lagos, the shareholders resolved among others for the company to pay a dividend of 22 kobo per ordinary share of 50 kobo be paid to all shareholders whose names appeared in the Company’s Register of Members as of May 21, 2025.
On Tuesday, July 29, UAC released its results for the half-year (H1) period ended June 30, 2025. In H1’25, its revenue rose to N110.406billion from N83.252billion in H1’24, up by 32.6 percent. Gross profit of N28.256billion in H1’25 as against N18.712billion in H1’24 represents an increase by 51 percent. Its H1’25 pre-tax profit came lower to N11.100billion from N14.950billion in H1’24, down by 25.8 percent, while profit for the H1’25 period stood lower at N7.359billion from N9.541billion in H1’24, down by 22.9percent.
Quarter-on-quarter (QoQ) highlights show that in Q2’25 UAC reported N54billion revenue, 27 percent higher than Q2’2024, driven by sales growth recorded across all operating segments. The company detailed the contributors of the earnings as follows: Paints (+41percent), Packaged Food and Beverages (+32percent), Edibles and Feed (+16percent) and Quick Service Restaurants (+5percent) segments.
In Q2’25, the gross profit was N14billion, 46 percent higher than Q2’2024. UAC said its gross margin expanded 321 basis points (bps) to 26 percent due to volume growth in the Paints segment, improved production efficiency in the Packaged Food and Beverages segment, and reflective of disciplined pricing adjustments implemented to mitigate the impact of inflation on input costs. UAC reported N5.8billion operating profit in Q2’25, which is 77 percent higher than that of Q2’2024. Excluding exceptional items, UAC underlying profit before tax (PBT) was N6.1billion in Q2’25, 146 percent higher than Q2 2024 underlying PBT of N2.5billion.
“In Q2 2025, macroeconomic indicators improved supported by the ongoing implementation of reforms. The foreign exchange market was stable, and inflation moderated. Against this backdrop, UAC delivered strong results. Revenue and operating profit increased 27 percent and 77 percent respectively. Underlying profit before tax increased 146percent, reflecting gross margin expansion across our core businesses, operational efficiency and improved results from our associate companies, which more than offset higher finance costs in the period. Looking ahead, we will continue to execute our growth and value creation strategy with discipline and a long-term focus,” said Fola Aiyesimoju, Group Managing Director, UACN.
Acquisition presents significant potential …
Fola Aiyesimoju, Group Managing Director of UAC, said: “As a company with a strong presence in Africa, we are deeply committed to the continent’s growth. We are pleased to announce the acquisition of Chivita|Hollandia (CHI Limited), a leading dairy and juice business in the region.
“This acquisition presents significant potential to build on Chivita|Hollandia’s (CHI Limited’s) legacy of excellence and innovation. I would like to thank the management and staff of Chivita|Hollandia (CHI Limited) and look forward to working with the team to support the next phase of growth,” Aiyesimoju said.
Eelco Weber, Managing Director of Chivita|Hollandia (CHI Limited), said the business has made significant progress over the past few years, with the Chivita and Hollandia brands becoming clear leaders in their categories. “I would like to thank our over 5,000 employees for their hard work and dedication in bringing our business forward and earning us recognition as a Goldrated Great Place to Work,” Weber said.
The management team, including Weber, are confident in the company’s growth prospects.
“We see a bright future for Chivita|Hollandia (CHI Limited),” Weber said. “With the strength of our team, coupled with the dedication of UAC, there will be exciting opportunities for further growth.”
