November 1, 2012/ Press Release/ UAC Nigeria

UAC of Nigeria Plc. (“UAC” or the “Group”), the most diversified conglomerate in Nigeria with  operationsin foods, beverages, dairies, restaurants, paints, logistics, real estate and automobiles announces its unaudited results for the 9 months ended 30 September 2012.

Commenting on the results, UACN’s Group Managing Director and CEO, Mr Larry Ettah said:  “I am pleased to announce strong performance for the third quarter of the year, despite what remains a challenging operating environment.  We have recorded improvements in margins in the quarter and a reduction in operating costs from last quarter’s results at group level. Our on-going execution of a strategy that targets volume expansion and organisation restructuring is being validated. Our proposed investment in Livestock Feeds Plc is awaiting regulatory approval and we are at an advanced stage of negotiation of final terms with regard to the planned investment in Portland Paints Plc. We remain confident of delivering on our strategic targets for the full year”.

Group Financial Highlights
•         Revenue of N47.5 billion, up 9% year on year (N43.5 billion September 2011)[1][1].

•         Profit Before Tax of N5.8 billion, up 31% (N4.5 billion September 2011)

•         Profit After Tax of N3.9 billion, up 27% (N3.1 billion September 2011)

•         Earnings Per Share: 132 kobo (80 kobo September 2011)

Performance Ratios
•       Stable Gross Profit Margin of 27% (28% June 2012 and 23% September 2011)

•       Stable Operating Profit Margin of 14% (14% June 2012 and 11% September 2011)

•       Improving PBT Margin of 12%(11% June 2012 and 10% September 2011)

Capital Structure Ratios
•      Debt to Equity ratio of 0.42x (0.51x June 2012 and 0.43x September 2011)

•      Debt to Total Capital ratio of 0.33x (0.40x June 2012 and 0.34x September2011) -

•       Debt to Operating Profit ratio of 2.15x (2.63x June 2012 and 2.81x September 2011)

•      Figures indicate a drop in long term debt vs. relative stability in shareholders’ equity and total capital. In addition, debt levels have been falling at a faster rate than the increase in operating profit.

Key Subsidiary Performance:

UAC of Nigeria operates through ten subsidiaries; Q3 2012 performance in our principal markets was as follows:

UAC Foods Ltd (foods, dairies, fruit drinks and spring water) Profit before Tax of N1.51 billion up 44% (N1.05 billion Sept 2011)

Operational highlights
•         Turnover of N 10.73 billion up 14% from last year N9.40 billion

•         Improved yield and quality of products

•         Relaunch of Gala with new packaging design, pack formats and micronutrients inclusion

•         Achieved volume growth year-to-date despite dip in Q1

•         Management’s focus on restructuring, cost savings and volume expansion is yielding results

UPDC Plc (real estate) Profit BeforeTax of N869 million up 5.1% (N827 million Sept 2011).

Operational highlights
•         Turnover of N7.78 billion up 18% (N6.60 billion Sept 2011)

•         Gross Profit up 34% year on year

•         REIT awaiting regulatory approvals

•         Due Diligence by potential equity investor ongoing

 Grand Cereal Ltd(animal feed, cereal meal and edible oil) Profit Before Tax of N2.23 billion (up 12% YOY N2.05 billion).

Operational highlights
•         Turnover of N19.28 billion up 25% (N15.38 billion Sept 2011)

•         Rights Issue fully subscribed

•         Launch of new product – ‘Growmaxx’ poultry feed

CAP Plc (Paints) Profit before tax of N1.29 billion, up 38% (N934 million Sept 2011)

Operational highlights
•         Turnover of N3.82 billion up 27% (N3.02 billion Sept 2011)

•         Opened new Dulux Colour Centres in Lagos and Anambra states

 MDS Logistics Plc Profit before tax of N659 million up 16% (N568 million Sept 2011)

Operational highlights
•         Turnover of N2.45 million down 3% (N2.53 million Sept 2011)

•         Completion of new distribution hub

•         Responding to clients’ demand for new sites

•         Discussions with potential strategic investor on-going

UAC Restaurants Ltd (QSR) Loss before tax of N348 million down 53% (Loss N742 million Sept 2011)

Operational highlights

•Turnover of N1.6 billion down 65% from last year’s (N4.55 billion Sept 2011) due to fuel scarcity leading to man-hours loss, disruption to commerce and reduced footfall in our restaurants at Mobil filling stations.

•         Combo meals launched

•         Re opened 5 outlets

•         Discussions with potential strategic investor on-going

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