Economy
UAC Nigeria to Implement Pricing Strategies for Better Gross Margin
By Dipo Olowookere
The Group Managing Director of UAC Nigeria Plc, Mr Fola Aiyesimoju, has expressed the willingness of the management to print a better gross margin going forward.
Business Post reports that a gross margin, which is also known as the gross profit margin, is calculated by deducting the cost of goods sold from revenue and dividing the outcome by revenue.
In the 2021 financial year, UAC Nigeria recorded a gross margin of 17.3 per cent compared with the 19.7 per cent achieved in the 2020 accounting year.
Mr Aiyesimoju attributed this decline to the rising prices of raw materials in the fiscal year under review, noting that to address the issue, the company will implement its pricing strategies.
“Sustained escalation in raw material costs remains a concern and resulted in deterioration of our gross profit margin which we did not fully offset with our efficiency gains.
“A key focus going forward is on implementing pricing strategies to improve gross margin,” he stated.
However, he stressed that UAC Nigeria is “encouraged by strong topline growth delivered across our operating platforms and improving efficiency as evidenced by our operating expenses to sales ratio.”
Speaking further, he said, “In line with our strategy to simplify the UAC Group structure and enhance shareholder value, we completed the distribution of UPDC REIT units, attained 100 per cent ownership of UAC Foods Limited, merged and fully integrated CAP Plc and Portland Paints and Products Nigeria Plc.”
In the year, the firm boosted its revenue by 24.3 per cent to N101.1 billion from the *1.4 billion reported a year ago and this was supported by sales growth across all operating segments.
It was observed that the Animal Feeds and Other Edibles segment rose by 15.7 per cent as a result of an increase in prices to offset rising raw material costs.
The Paints segment of the business posted revenue growth of 44.4 per cent on account of higher volumes and price increase compared to 2020 which was impacted by limited sales due to the restrictions in the movement of people and goods in Q2 2020.
In addition, the Packaged Food and Beverages arm of the group grew its turnover by 33.0 per cent as a result of volume growth in the snacks, water and dairy categories; while the Quick Service Restaurants segment rose by 44.9 per cent.
A look at the financial statements showed that the firm recorded a gross profit of N17.5 billion in contrast to the N16.0 billion reported in 2020, with selling and distribution costs jumping to N6.4 billion from N5.8 billion.
Administrative expenses gulped N8.2 billion in the period under consideration compared with N7.8 billion a year earlier as the operating expenses rose to N14.6 billion from N13.5 billion.
The earnings before interest and taxes (EBIT) of UAC Nigeria stood at N5.6 billion versus N3.6 billion in the preceding year. This was impacted by a loss from associate companies (UPDC and MDS) in 2021 versus a profit from associates in 2020.
In the accounting year, the profit before tax of the organisation dropped to N4.6 billion from N5.1 billion, while the profit after tax depleted to N3.3 billion from N3.9 billion.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange suffered its fifth decline for this week on Friday after it closed lower by 0.09 per cent, with the Unlisted Security Index (NSI) down by 8.91 points to 3,639.10 points from 3,642.22 points and the market capitalisation declining by N1.86 billion to end N2.177 trillion compared with the previous day’s N2.179 trillion.
Yesterday, the bourse recorded three price losers led by NASD Plc, which crumbled by N4.00 to close at N55.00 per share compared with the previous day’s N59.00 per share, as FrieslandCampina Wamco Nigeria Plc depreciated by 68 Kobo to N66.23 per unit from Thursday’s closing price of N66.91 per unit, as Mass Telecom Innovation Plc lost 4 Kobo to end at 40 Kobo per share versus the preceding day’s 44 Kobo per share.
On the flip side, there were two price gainers led by Central Securities Clearing System (CSCS) Plc, which added 21 Kobo to close at N40.81 per unit compared with the previous session’s N40.60 per share and UBN Property Plc, which improved by 10 Kobo to N2.09 per share from N1.99 per share.
During the session, the level of activity increased as the the volume of transactions surged by 255.7 per cent to 10.2 million units from 2.9 million units, the value of trades soared by 122.0 per cent to N189.5 million from N85.4 million, and the number of deals increased by 22.5 per cent to 49 deals from the previous day’s 40 deals.
When the bourse ended for the day, CSCS Plc remained the most traded stock by value on a year-to-date basis with 10.5 million units worth N427.7 million, trailed by FrieslandCampina Wamco Nigeria Plc with 893,553 units traded for N60.1 million, and MRS Oil Plc with 291,801 units valued at N58.3 million.
However, CSCS Plc took over as the most active stock by volume on a year-to-date basis with 10.5 million units old for N427.7 million, as Geo-Fluids Plc slipped to second place with 7.7 million units worth N52.4 million, and Mass Telecom Innovation Plc occupied the third spot with 6.2 million units transacted for N2.5 million.
By Adedapo Adesanya
The Naira appreciated against the US Dollar by 44 Kobo or 0.03 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, January 24 to sell for N1,421.63/$1 compared with the N1,422.07/$1 it was traded on Thursday.
This was buoyed by increased FX inflows from exporters as well as sustained Dollar volume from non-bank corporate, individual and other sources.
However, the Naira lost N15.61 against the Pound Sterling in the same market window yesterday to quote at N1,924.17/£1 compared with the previous day’s value of N1,908.56/£1 and depreciated against the Euro by N3.60 to finish at N1,669.56/€1 versus the N1,665.96/€1 it was exchanged a day earlier.
At the GTBank forex counter, the Nigerian currency traded flat against its American counterpart at N1,430/$1, and also maintained stability against the greenback at the parallel market segment during the session at N1,485/$1.
Meanwhile, the cryptocurrency market took a hit as slowdown occurred, explained by large holders taking profits.
The market had seen a short lived boost after Japanese intervention sent the Yen surging against the US Dollar, a move some saw as a necessary step toward resuming a bull market in crypto.
However, investors took profit with Dogecoin (DOGE) down by 0.8 per cent to $0.1240, and Cardano (ADA) down by 0.7 per cent to $0.3585.
Further, Solana (SOL) dropped 0.6 per cent to sell at $126.89, Litecoin (LTC) depreciated by 0.5 per cent to $68.42, and Binance Coin (BNB) fell by 0.1 per cent to $890.13.
But, Ripple (XRP) appreciated by 0.4 per cent to $1.91, Ethereum (ETH) rose by 0.3 per cent to $2,953.72, and Bitcoin (BTC) grew by 0.1 per cent to $89,477.58, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
By Modupe Gbadeyanka
The House of Representatives Minority Caucus Ad-hoc Committee on Tax Laws on the Allegations of Illegal Alterations on the Gazetted Tax Laws has released an interim report on its findings, accusing the executive arm of government of removing and inserting some items in the bills passed by the parliament.
The chairman of the 7-man panel, Mr Afam Victor Ogene, in the report released on Friday, said the laws were altered after they were transmitted to the executive by the National Assembly for assent by President Bola Tinubu.
Recall that a member of the green chamber of the parliament, Mr Abdulsamad Dasuki, raised an alarm on the discrepancies in the gazetted version and the one passed by the legislative arm of government.
The Minority Caucus of the House of Reps, headed by Mr Kingsley Chinda, in a statement on December 28, 2025, vowed to “unconditionally protect the independence of the legislature and our democracy.”
It then constituted the committee on January 2, 2026, to get to the roots of all the issues surrounding the scandal.
The next day, the lower chamber of the National Assembly, through its spokesman, Mr Akintunde Rotimi, released a statement announcing that the Speaker, Mr Abbas Tajudeen, had directed the release of the four tax reform Acts; The Nigeria Tax Act, 2025; The Nigeria Tax Administration Act, 2025; The National Revenue Service (Establishment) Act, 2025; and The Joint Revenue Board (Establishment) Act, 2025, duly signed into law by the President, for public record, verification, and reference.
The statement further added that the Speaker has also ordered an internal verification and immediate public release of the Certified Acts to eliminate doubts, restore clarity, and protect the sanctity of the legislature.
In its report yesterday, the panel said it discovered some alterations in the gazetted version, noting that, “given the anomalies, illegalities, and impunity observed, which clearly undermine the National Assembly’s constitutional powers and democracy, the committee finds the current evidence sufficient to warrant a deeper investigation. This will ensure accountability for the affront against the legislature.”
“To achieve this, the committee respectfully requests an extension to conduct a more thorough examination of the matter,” it added.
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