UAC of Nigeria Plc has reported negative results in the key highlights of its full-year audited financial statement for the year ended December 31, 2020.
According to the company’s result, its Profit Before Tax slumped by 44.38 per cent to N4.15bn against the N7.46bn reported in 2019.
Its Profit After Tax also dropped by 35.30 per cent to N3.46bn in the reference year relative to N5.35bn of 2019.
UACN, a conglomerate operating in the food and beverage, real sstate, paint and logistics sectors, suffered a drop of 69.26 per cent in its net income from N1.79bn reported in 2019 to N55m in 2020.
Its profit from operating activities fell by 36.52 per cent to N3.597bn from N5.67bn in 2019.
Further analysis of the company’s result showed that its gross profit dropped to N15.99bn from N16.63bn, which represented a decline of 3.83 per cent.
The company’s basic earnings per share fell by 47.21 per cent to N71 from N132
While total assets dropped to N92.17bn from N107.595bn (14.34 per cent), its total liabilities stood at N30.79bn in 2020 or -34.55 per cent different from N47.05bn in 2019.
The company, however, recorded a rise in its total shareholders’ equity by 1.37 per cent to N61.37bn relative to N60.54bn in 2019.
With no bonus dividend declared, a final dividend of N0.65k would be paid to the company’s shareholders.
The Group’s Managing Director, Fola Aiyesimoju, while commenting on the company’s pre-tax profits, said, “FY 2020 was challenging, with operational disruptions related to the Coronavirus Disease outbreak and #EndSARS protests.
“We focused on executing our strategy, implementing initiatives relating to UACN Property Development Company Plc, significantly reducing leverage and increasing cash, strengthening management, and driving profitability. Operating performance for the year was negatively impacted by aforementioned disruptions, as well as input cost escalation.”