UACN Plc Reduces Debt to N307 Billion in H1 2026

UACN Plc's debt decreased to N307 billion in the first half of 2026, down from N344.8 billion at the end of 2025, following a repayment of N37 billion. This reduction was facilitated by a substantial increase in free cash flow, which rose to N70.9 billion from N8.8 billion in H1 2025, attributed to improved operating performance and reduced inventory.

CardinalStone Research noted that this fast deleveraging has led to a revised FY2026 total debt forecast of N284 billion, down from N297 billion. The Packaged Foods and Beverages segment was identified as the main earnings driver, contributing 84.2 percent of group revenue, with C.H.I.

Limited's integration showing quicker benefits than anticipated. C.H.I.'s operating margin improved to 15.1 percent in H1 2026 from 2.2 percent at acquisition.

Despite risks from energy costs and geopolitical uncertainties, CardinalStone maintained a BUY recommendation for UACN, raising its 12-month target price to N246.65 from N241.18.