UAC Swings to N1.98bn Loss on Chivita, Hollandia Acquisition Cost
UAC of Nigeria swung to a loss of N1.98 billion in the third quarter from a profit of N4.13 billion a year earlier owing to the impact of the one-off cost of acquiring Chivita|Hollandia (CHI Limited), the maker of Chivita and Hollandia, as well as the weaker performance of the animal feeds segment, the company said.
On 3 October, the company completed the acquisition of a 100% equity stake in CHI, a dairy and juice company in Nigeria, which will be consolidated into UAC’s financial statements from the fourth quarter, according to its latest earnings release.
The company put the transaction costs related to the acquisition at N2.3 billion.
“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 Group Managing Director Fola Aiyesimoju.
He said CHI acquisition “holds meaningful potential for UAC”, describing the juice maker as “a wonderful business with market-leading brands in attractive growth sectors of Nigeria’s food and beverage industry”.
