UAC of Nigeria Plc has revealed that the transaction costs related to its acquisition of Chivita | Hollandia (C.H.I. Limited), the maker of Chivita and Hollandia, amounted to ₦2.3 billion ($1.51 million).
In its latest earnings report, the conglomerate said it completed the acquisition of a 100% equity stake in C.H.I. Limited on October 3, 2025, making the beverage and dairy firm a wholly owned subsidiary. UAC said the transaction will be consolidated into its financial statements beginning in the fourth quarter of 2025.
“Our third-quarter results reflect a combination of acquisition-related costs, higher finance charges, and underperformance from the animal feeds segment, which more than offset the positive contributions from the packaged food and paints segments,” said Fola Aiyesimoju, Group Managing Director, in the company’s report.
Aiyesimoju explained that the feed segment’s weakness was due to a sharp decline in agricultural commodity prices, resulting in inventory costs that exceeded current market values.
“We will hold investor engagements to provide insight on the C.H.I. Limited acquisition, which we believe holds meaningful potential for UAC. C.H.I. Limited is a wonderful business with market-leading brands in attractive growth sectors of Nigeria’s food and beverage industry,” he added.
First quarterly loss in 21 months
The acquisition costs contributed to UAC’s first quarterly loss since Q1 2023. The group reported a loss after tax of ₦1.98 billion ($1.3 million) in the three months to September, compared to a profit of ₦4.13 billion ($2.61 million) a year earlier.
For the first nine months of 2025, UAC remained profitable but earnings fell 60.6% year-on-year to ₦5.38 billion ($3.54 million). As of Thursday, the group was valued at ₦194.6 billion ($135.4 million) on the Nigerian Exchange Limited (NGX).
According to real-time tracking platform African Exchange, UAC shares have gained 111% year to date, ranking the company 45th in performance on the NGX.
Strategic move in the food and beverage space
The deal, announced on July 30, 2025, marks a major strategic move for UAC and comes six years after Coca-Cola completed its full acquisition of C.H.I. Limited to expand its footprint in Africa’s value-added dairy and juice segment.
Stanbic IBTC Holdings Plc served as the lead arranger and global coordinator for the transaction through its investment banking arm, Stanbic IBTC Capital Limited, which structured a bespoke financing package tailored to UAC’s strategic objectives.
Financial performance breakdown
Revenue in the third quarter fell by 1.5% year-on-year to ₦49.2 billion ($32.3 million), mainly due to decreased volume in the animal feeds segment, which offset growth in other divisions. Gross profit declined 7.6% to ₦11.1 billion ($7.29 million), while gross margin contracted by 148 basis points to 22.6%.
Operating expenses rose 56% year-on-year to ₦11 billion ($7.23 million), driven by acquisition-related costs, inflationary pressures, and increased personnel and transport expenses. The operating expenses-to-sales ratio climbed to 22.3% in Q3 2025, up from 14.1% a year earlier.
Net finance costs surged to ₦2.1 billion ($1.38 million), compared to a net finance income of ₦31 million ($19,564) in the prior year, reflecting higher borrowing costs in the animal feeds segment.
The company also noted the absence of a prior-year foreign exchange revaluation gain of ₦816 million ($536,312), which affected year-on-year comparisons.
Share of profit from associate companies increased to ₦598 million ($393,033), up from ₦215 million ($135,689) in Q3 2024, supported by improved performance from UPDC Plc and MDS Logistics.
Note: Exchange rates are based on official averages — ₦1,437/$1 for October 30, 2025; ₦1,521.5/$1 for Q3 2025; and ₦1,584.5/$1 for Q3 2024.
