UAC of Nigeria Plc saw its share price soar yesterday, reaching a 52-week high of ₦73 after announcing its acquisition of Chivita|Hollandia (CHI Limited) from The Coca-Cola Company.
Despite reporting a 23% decline in half-year earnings, investor sentiment remained bullish, with shares rising by 9.94% from a 52-week low of ₦16.15.
The deal—though the financial details remain undisclosed—marks a strategic move for UAC into Nigeria’s growing fast-moving consumer goods (FMCG) sector.
CHI Limited, known for its market-leading Chivita and Hollandia brands in the juice and dairy segments, respectively, adds a powerful portfolio to UAC’s consumer offerings.
In the first half of 2025, UAC posted a 22.9% decline in profit after tax, falling to ₦7.36 billion from ₦9.54 billion in H1 2024.
The dip, according to Businessday’s report, was attributed to rising finance costs despite a 33% revenue increase to ₦110.41 billion, driven by strong performances across animal feeds, paints, and packaged foods. Gross profit rose 51% year-on-year to ₦28.26 billion, reflecting improved product mix and operational efficiencies.
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Operating profit nearly doubled to ₦12.59 billion, supported by gains from asset disposals and non-core income streams, including ₦556.7 million from asset sales and ₦676 million in other income.
Fola Aiyesimoju, Group Managing Director of UAC, highlighted the acquisition as a pivotal milestone. “We are pleased to announce the acquisition of Chivita|Hollandia, a leading dairy and juice business in the region. This move aligns with our long-term commitment to driving sustainable growth across Africa,” he stated.
Eelco Weber, Managing Director of CHI Limited, also expressed optimism, crediting the company’s over 5,000 employees for its category leadership and positive workplace reputation.
“We see a bright future with UAC’s support, and we’re excited about the opportunities ahead,” he said.
The transaction remains subject to regulatory approval. For Coca-Cola, the divestment aligns with its global strategy to adopt a flexible, asset-light model and prioritise scalable brands.
The company reaffirmed its commitment to investing $1 billion in Nigeria over the next five years, conditional on a stable and supportive business environment.
Image Credit: Proshare
