UAC of Nigeria Plc has announced its unaudited results for the half year ended June 30, 2020 with a record of 55.21 per cent decline in profit after tax.
According to the group in a filing with the Nigerian Stock Exchange (NSE), the profit after tax during the period under review stood at N1.16 billion against N2.59 billion posted in 2019, representing a decline of 55.21 per cent.
The group recorded a profit before tax of N1.03 billion in H1 2020 as against N4.17 billion posted in 2019, a drop of 75.29 per cent. Revenue dropped by 8.67 per cent from N40.11 billion in 2019 to N36.63 billion in H1’ 2020.
However cost of sales dropped 6.70 per cent to N29.64 billion from N31.77 billion in 2019. UAC of Nigeria for the quarter ended 31 March 2020 recorded 87.1 per cent growth in profit after tax.
The profit after tax during the period under review stood at N1.864 billion against N996 million posted in 2019, representing a growth of 87.1 per cent.
The group recorded a profit before tax of N1.669 billion in Q1 2020 as against N2.400 billion posted in 2019, a drop of 30.5 per cent. Revenue dropped by 2.9 per cent from N20.141 billion in 2019 to N19.549 billion in Q1’ 2020.
The group noted that results for UACN Property Development Company Plc(UPDC), which has been classified as a discontinued operation, were accounted for separately in UAC’s Q1‘20 financial statements (in accordance with the provisions of IFRS 5).
All figures for Q1‘19 have been restated for discontinued operations. It said that following divestment of control in MDS, UAC’s share of profits from MDS’ operations has been reported under “Share of Profit/(Loss) of Associates and JVs” in Q1 2020 while MDS results are consolidated in Q1 2019.
Commenting on the performance, Group Managing Director, Mr. Folasope Aiyesimoju, stated: “Nigeria, along with the rest of the world continues to struggle with the impact of COVID-19, which is first and foremost a healthcare and humanitarian disaster.
“We at UAC have assessed the pandemic’s impact on our people, our businesses and our communities, taking urgent action to protect the health and safety of our employees and stakeholders
We have instituted business continuity plans to ensure operations run smoothly and we monitor these daily.
We are also contributing towards alleviating the impact of the Pandemic on our society.
“For our Q1 2020 performance, we recorded modest top line growth, after adjusting for the reclassification of MDS Logistics. Investments in branding, selling and distribution, as well as talent offset gross profit gains resulting in lower operating profits and margin compression.
We believe these investments to be critical to drive sustainable growth and profitability over the long-term.