Nigerian firms report mixed nine‑month earnings as UAC surges, Geregu Power contracts

UAC of Nigeria Plc announced a pre‑tax profit of N37.69 billion for the nine months ended September 2026, a 262.5% increase from the same period a year earlier. Revenue more than tripled to N523.00 billion, up 227.7%, largely because of the consolidation of C.H.I. Limited. Group Managing Director Fola Aiyesimoju credited the surge to stronger packaged food, beverages and paints businesses, as well as improved cash generation and working‑capital release.

In contrast, Geregu Power Plc reported a pre‑tax profit of N7.55 billion for the same period, a 79.85% decline from N37.46 billion in 2025. Revenue fell 80.71% to N25.35 billion, reflecting a sharp contraction in electricity sales. Despite the overall downturn, the company beat its Q3 forecast, posting N3.98 billion in pre‑tax profit, well above the N617.01 million expected.

Other listed firms also disclosed results. Nigerian Aviation Handling Company Plc (NAHCO) posted a nine‑month pre‑tax profit of N21.24 billion, up 18.39% from the prior year, with revenue rising 16.51% to N55.64 billion. Wema Bank Plc recorded a pre‑tax profit of N258.64 billion, a 76.62% increase, driven by higher interest income and stronger non‑interest earnings. Berger Paints Nigeria Plc posted a modest 14.8% rise in pre‑tax profit to N1.68 billion and declared an interim dividend of 50 kobo per share.

Background

UAC of Nigeria, a diversified conglomerate, has been expanding its consumer‑goods footprint, notably through the acquisition of C.H.I. Limited, which boosted its revenue base. The company’s focus on packaged foods, beverages and paints aligns with its strategy to leverage high‑margin consumer segments.

Geregu Power, a power‑generation subsidiary, experienced a severe revenue drop as electricity sales fell sharply, a trend that has affected the broader energy sector in Nigeria. The company’s Q3 performance, however, showed resilience by exceeding analysts’ forecasts despite lower sales.

NAHCO, the leading airport ground‑handling firm, benefitted from increased aircraft handling, cargo operations and logistics services, contributing to steady profit growth. Wema Bank, one of the country’s major banks, saw earnings rise on the back of higher net interest margins and non‑interest income, although rising funding costs and operating expenses moderated earnings per share.

Berger Paints, a key player in the paints market, posted modest revenue growth and maintained dividend payouts, reflecting a stable but competitive market environment.

Why it matters

The divergent results highlight sector‑specific dynamics in Nigeria’s economy. UAC’s profit surge signals strong consumer demand and successful integration of acquisitions, which may encourage further consolidation in the consumer‑goods space. Conversely, Geregu Power’s steep profit decline underscores challenges in the power sector, including reduced electricity sales that could affect the nation’s energy security and investment climate.

NAHCO’s earnings growth points to rising air‑travel and cargo activity, benefitting ancillary service providers and potentially supporting job creation in aviation logistics. Wema Bank’s robust profit increase demonstrates the profitability of banking operations amid higher interest rates, though the slight dip in earnings per share suggests cost pressures that could affect future returns to shareholders.

Berger Paints’ dividend declaration provides a modest income stream for investors and indicates confidence in its cash‑flow generation despite modest revenue expansion.

What happens next

UAC’s Group Managing Director reaffirmed the company’s commitment to completing announced divestments and reducing debt, indicating that future financial releases may reflect further balance‑sheet optimisation. Geregu Power’s management will need to address the underlying decline in electricity sales, though the company has not disclosed specific remedial actions.

NAHCO, Wema Bank and Berger Paints are expected to publish audited full‑year results later in the year, which will confirm whether the nine‑month trends persist. Stakeholders will be watching for any updates on UAC’s divestment programme and Geregu Power’s strategy to stabilise revenue.