UAC of Nigeria doubles operating profit for 2024

UAC of Nigeria has reported a significant rise in revenue, up 63 per cent year-on-year to 197 billion naira in 2024. This impressive growth was primarily driven by sales increases across the company's core operating segments. Group Managing Director, Fola Aiyesimoju, attributes this success to the strategic focus on pursuing new markets, pricing and margins, as well as effective risk management in the face of challenges such as interest rates and foreign exchange fluctuations. Looking ahead to 2025, Aiyesimoju emphasizes that the company's priority will continue to be creating shareholder value through strategies that prioritize profitable growth, scale, and operational simplicity. In a recent interview with CNBC Africa, Aiyesimoju delved deeper into the factors behind the company's performance and outlined key initiatives for the future. Aiyesimoju credited the company's success in 2024 to a strategy implemented several years ago to reignite growth. By focusing on enhancing talent, streamlining organizational structure, and leveraging technology, UAC of Nigeria set a solid foundation for achieving growth objectives. The Group Managing Director also highlighted the critical role played by the company's workforce, comprising nearly 5,000 individuals dedicated to delivering quality products and services to customers across various markets. When discussing the performance of the core segments, Aiyesimoju pointed out the growth seen in the durables, paint, and agro-allied businesses. Each segment adopted distinct strategies tailored to their specific markets, with a common emphasis on product quality and availability driving growth. Notably, the packaged food and beverage segment experienced a remarkable 102% revenue surge in 2024. Aiyesimoju attributed this success to the strong brands within the segment, such as Gala sausage rolls and Supreme ice cream, as well as a relentless focus on customer service, product quality, and value proposition. He expressed optimism about sustaining growth in the segment by continuing to prioritize aggressive expansion and operational efficiency. Additionally, Aiyesimoju discussed the doubling of operating profits in 2024, excluding one-off gains from the previous year. He underscored the company's commitment to maximizing shareholder value through prudent pricing and margin management, operational efficiency, and a frugal approach to expenses. By maintaining this mindset and strategic focus, UAC of Nigeria achieved a remarkable ninefold increase in underlying profit. Despite challenges posed by economic reforms and market volatility, Aiyesimoju emphasized the importance of robust risk management practices that safeguard the company's profitability while capitalizing on growth opportunities. When addressing the quick service restaurant segment, Aiyesimoju acknowledged the need for strategic expansion to enhance its contribution to the overall business. While acknowledging the challenges faced by the segment, such as sub-scale operations, he reiterated the company's commitment to upholding quality and availability standards as they pursue growth. Looking ahead to the new financial year, Aiyesimoju outlined the strategic priorities for UAC of Nigeria, with a strong emphasis on driving growth across core businesses, investing in research and development for new product launches, and exploring potential portfolio expansions. He highlighted the importance of prioritizing talent development, technology innovation, and operational excellence as key enablers for future success. As UAC of Nigeria continues its growth trajectory, Aiyesimoju's strategic vision and commitment to value creation position the company for sustained performance and profitability in the coming years.