Rating Release
Agusto & Co. hereby affirms the “A-” rating assigned to UAC of Nigeria PLC with a stable outlook
The rating expires on 30 June 2026.
Agusto & Co. hereby affirms the “A-“ rating assigned to UAC of Nigeria PLC (“UACN”, “the Holding Company” or “the Company”). The assigned rating reflects UACN’s good financial profile, supported by its sizeable treasury portfolio, increased gains from foreign-currency denominated investments, diversified income streams and established position across key market segments. The rating is further upheld by the Holding Company’s low-geared capital structure and adequate working capital position, underpinned by its substantial liquid assets, a lean operating model and a robust equity buffer. The rating also considers UACN’s expansion initiatives aimed at scaling its businesses, including the launch of new food and paint products, planned entry into neighbouring West African markets and optimisation of the restaurant operations. However, the assigned rating is constrained by the Company’s weak operating cash flow, largely due to its high related party receivables arising from intercompany advances. The rating is further moderated by the vulnerability of the future earnings of portfolio entities to the rising cost pressures and weakening consumer discretionary spending, which could impact dividend payments to UACN.
UAC of Nigeria PLC is a diversified investment holding company with core business interests in Nigeria’s edibles and feed, food and beverage, paints and quick-service restaurant industries. UACN operates a decentralised structure, providing strategic oversight, brand stewardship and capital support to its portfolio companies, which have well-known brands such as Gala, Dulux, Grand, Vital Feed, Debonairs, Supreme and SWAN.
The opinions expressed in this rating release do not represent investment or other advice and should therefore not be construed as such.
