Just hours after UAC of Nigeria Plc unveiled its deal to acquire Chivita|Hollandia from Coca-Cola, investor sentiment flipped.
Rather than dwell on a 23% dip in profit, the market rallied behind the company’s bold bet on growth.
By day’s end, UACN shares had surged nearly 10%—marking a new 52-week high and signalling strong confidence in the group’s consumer goods strategy.
Despite weaker earnings, the market rallied behind the acquisition, signalling confidence in UAC’s long-term vision.
Financials Show Mixed Picture
Earlier, UAC reported a 22.9% decline in after-tax profit for the first half of 2025, falling to ₦7.36 billion from ₦9.54 billion in 2024.
Rising finance costs drained gains from operational improvements.
However, the underlying business continued to grow.
Revenue jumped by 33% to ₦110.41 billion, as key segments—animal feeds, paints, and packaged foods—drove expansion.
Simultaneously, gross profit increased by 51% to ₦28.26 billion, while operating profit nearly doubled to ₦12.59 billion.
UAC also unlocked value through asset sales and non-core income, adding ₦556.7 million and ₦676 million respectively.
Chivita|Hollandia Boosts Portfolio
Meanwhile, the Chivita|Hollandia deal emerged as the real catalyst.
Although UAC kept the transaction value under wraps, the acquisition signalled a decisive move to strengthen its footprint in Nigeria’s fast-moving consumer goods sector.
CHI Limited commands market leadership through two powerhouse brands—Hollandia in dairy and Chivita in fruit juice—both boasting strong brand equity and national reach.
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Group Managing Director of UAC, Fola Aiyesimoju, underlined the company’s intentions.
He said: “We are investing in Africa’s growth.
By acquiring Chivita|Hollandia, we aim to build on its legacy of excellence and innovation.”
He also expressed gratitude to CHI’s team and emphasised his readiness to collaborate on the next growth phase.
Outlook And Coca-Cola’s Shift
Likewise, Managing Director of CHI Limited, Eelco Weber, acknowledged the team’s contributions.
He said: “Our 5,000 employees drove Chivita and Hollandia to category leadership.
Their hard work earned us recognition as a Gold-rated Great Place to Work.”
He added that the management team remains optimistic.
“With UAC’s support and our capable workforce, we are ready to seize new opportunities for growth.”
Looking ahead, UAC awaits regulatory approval to complete the transaction.
Yet this acquisition already aligns with a broader shift in Coca-Cola’s global strategy.
Instead of maintaining heavy asset ownership, Coca-Cola now prioritises agility and scale.
The company recently committed to investing $1 billion in Nigeria over five years, reaffirming its belief in the region’s potential—provided the business environment remains predictable.
Ultimately, UAC didn’t just announce a deal.
It sent a message.
By acquiring a dominant player in food and beverages, the company signalled its readiness to lead—and investors wasted no time backing that ambition.
