UAC of Nigeria Plc, a fast-moving consumer goods (FMCG) company, sold its Eurobond assets to fund the acquisition of CHI Limited in 2025, Economy Post has found.
In its 2025 financial statement posted on the Nigerian Exchange (NGX) on Friday, the UAC Group said it invested in Eurobond assets with the business model of solely holding for principal and interest payment and designated as debt instrument at amortised
cost.
However, it also added, “The Eurobond assets were disposed during the year to fund the acquisition of C.H.I. Limited.” The Group further said that it invested only in quoted debt securities with low credit risk.
“The Group’s debt instruments at amortised cost comprised solely of quoted Eurobonds that are rated by reputable Credit Rating Agencies. The Group released all provision for expected credit losses on its debt instruments at amortised cost following the
disposal of the Eurobonds,” it said.
A Eurobond is a debt security issued in one country that pays interest and principal in a currency other than the issuer’s home currency, according to Investopedia, an online economic dictionary.
Economy Post found that N5.502 billion worth of Eurobonds was disposed of by the company in 2025. On October 3, 2025, UAC of Nigeria completed the acquisition of 100 percent of the issued equity interests in Chivita|Hollandia (CHI Limited) following receipt of the required approval from the Federal Competition and Consumer Protection Commission (FCCPC).
CHI Limited is a leading dairy and juice company operating in Nigeria. The acquisition was effected through a wholly owned special purpose vehicle, UAC Food and Beverages Company Limited (UFB). In accordance with the Share Purchase Agreement (SPA), only a total cash consideration of N182.4 billion was paid to The Coca-Cola Company (TCCC) for the acquisition of 301 million ordinary shares of the company, representing 100 percent of the issued share capital of CHI Limited.
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The company said as at the reporting date, the purchase price allocation had not been finalised, noting that all transaction costs relating to the acquisition had been expensed as acquisition-related costs within other operating expenses, in accordance with IFRS 3.
UAC incurs loss
Meanwhile, UAC incurred a loss of N4.879 billion in the fourth quarter (Q4) of 2024, representing a pratfall from N6.769 billion profit recorded the corresponding period of 2024. However, the result was different in the full year of 2025, where the FMCG posted a profit of N503.552 million. But this represents a significant decline from N16.310 billion profit reported in full-year 2024.
The financial statement shows that UAC must work to cut its costs. Its cost of sales stood at 80.1 percent in Q4 of 2025 and 78 percent in full-year 2025. One financial analyst attributed the company’s poor financial results to the “huge financial outlay involved in the acquisition of CHI Limited” and “the rising operating costs borne by manufacturers in the country.”
Manufacturers in Nigeria are hard hit by high cost of energy, poor access to funds, poor infrastructural facilities and lower purchases fuelled by shrinking wallets. Manufacturers spent N676.6 billion on alternate energy in the first half (H1) of 2025, according to the Manufacturers Association of Nigeria (MAN).
The cost of powering Nigerian factories jumped 44 times in 10 years due to high energy prices and inflation. Manufacturers spent N25 billion on alternative sources to power their factories in 2014, but the cost rose to N1.11 trillion in 2024, according to data from MAN.
“While power availability improved, many manufacturers still faced frequent outages and costs as the country witnessed 12 national grid collapses and this remained a major concern,” MAN said in a 2024 report.
“Diesel is now eating up a bigger share of production costs than even raw materials or labour,” Segun Ajayi-Kadir, director-general of MAN, said. “That’s not sustainable.”
According to UAC, “Goodwill arising from UAC’s acquisition of C.H.I. Limited reflects the value attributable to C.H.I.’s strong brand portfolio, as well as the operational and commercial synergies expected from the combination of both businesses.”
The company added, “The Goodwill recognised on acquisition is provisional, as the Group has up to 12 months from the acquisition date to complete the Purchase Price Allocation and finalize all required assessments in line with accounting standards. As at 31 December 2025, the recoverable amount of the Goodwill exceeds its carrying value. Accordingly, no impairment has been recognised.”
