Three major conglomerates listed on the NGX mainboard; Transnational Corporation Plc (Transcorp), UAC of Nigeria Plc (UACN), and Unilever Nigeria Plc, have released their Q3 2025 unaudited results, showing contrasting financial and market performances in 2025.
Transcorp has experienced a 6% drop in its share price year-to-date (YtD), while UACN and Unilever have posted impressive YtD gains of 143% and 119%, respectively.
This divergence comes amid a broader market downturn, especially in November, where UACN managed to remain bullish with a 15% gain, pushing its market capitalization to N223 billion.
Meanwhile, Transcorp’s share price has fallen by 18% in November, and Unilever saw a 6.5% drop, bringing their respective market caps down to N416.642 billion and N413.640 billion.
Although Transcorp still leads in market capitalization, UACN has outperformed in terms of share price growth.
When we compare their closing prices to their 52-week highs, Unilever, trading at 90% of its peak, is closest to its 52-week high, suggesting limited room for significant upside.
UACN, despite its strong YtD gains, trades at 76% of its 52-week high, indicating considerable upside potential.
Transcorp, on the other hand, appears to have the highest upside, having closed at just 67% of its 52-week high, suggesting greater potential for growth if market conditions improve.
This suggests that Transcorp is trading the furthest from its 52-week high, making it potentially the most undervalued relative to the other two companies.
Now, let’s look at how they have performed financially and which company is executing better.
Revenue and Drivers: Who’s leading?
In the first nine months of 2025, Transcorp led with N413 billion in revenue.
- This reflects a 39% YoY growth, primarily driven by revenue from Transcorp Power, which contributed N271 billion.
UACN posted N159 billion in revenue, marking a 19.82% growth.
- Although it didn’t grow as quickly as Transcorp and Unilever, its recent acquisition of CHI Limited could significantly boost future revenue growth.
Unilever posted the lowest revenue at N155 billion but had the highest growth rate at 49.65%. This growth suggests that Unilever’s revenue, driven by its food segment, is expanding rapidly.
Verdict
While Transcorp leads in absolute revenue, Unilever wins in terms of revenue growth.
Over the long term, Transcorp remains the top performer in both growth and absolute figures. Transcorp Nigeria recorded a 5-year total revenue of N925 billion with a CAGR of 53%, followed by UACN with N609 billion and a CAGR of 25%.
Unilever, with a 5-year total revenue of N444.775 billion, has a CAGR of 30%.
Cost Management and Margins:
In 2025, the companies showed a significant shift in their cost management and margin performance. The average gross profit margin improved by 6.61%, reaching 36.11% in 9M 2025.
- UACN, despite recording the lowest gross profit, saw the highest margin growth, with an increase of 6.9%, bringing its gross profit margin to 25%. However, its finance costs are the highest among the three.
- Unilever performed well, achieving the second-highest gross profit margin at 41% and a strong post-tax profit margin of 14%. The company benefits from the lowest finance costs and interest expenses, resulting in the best interest coverage ratio.
- Transcorp leads with the strongest gross profit margin of 47% and a solid post-tax profit margin of 22%. Although its finance costs and interest expenses grew significantly, its high interest coverage ratio still indicates that the company is still generating enough earnings to comfortably cover its costs.
Verdict
Transcorp leads in cost efficiency and margins, with the highest gross profit and post-tax margins, making it the best performer in managing costs effectively.
However, when it comes to asset efficiency, UACN takes the lead with an asset turnover ratio of 1.07, meaning it is generating more revenue per unit of assets compared to Transcorp and Unilever.
Who has been more profitable and what is driving it?
On profitability, the situation is mixed. While all three companies have managed to sustain profitability in 2025, the growth rates differ significantly.
- Transcorp leads with a post-tax profit of N91 billion, up 20% YoY and slightly below the N94 billion reported in 2024 full year. This growth is driven by a high gross profit margin, supported by significant revenue growth, ensuring a strong bottom-line performance.
- Unilever recorded the second-highest post-tax profit of N22 billion, marking an impressive 99% growth. This outpaced the N15 billion full-year profit from 2024.
- UACN saw a 60% drop in profit to N5 billion in 9M 2025, a significant decline from the N16 billion post-tax profit in the 2024 full year.
Verdict
Transcorp leads in overall profitability, while Unilever shows the highest growth rate.
How strong are their balance sheets and who is carrying more debt?
When it comes to balance sheet strength, the companies display varying levels of asset size and debt profiles.
- Transcorp has the largest balance sheet, with total assets of N941 billion and the largest shareholders’ fund of N309.57 billion. However, it carries the highest leverage at 3x and the largest debt of N80 billion, resulting in a debt-to-equity ratio of 26%.
- Unilever holds the second-largest balance sheet, valued at N172 billion, a 21.44% increase from the previous year. Its shareholders’ funds stand at N97 billion, with a leverage of 1.77x. Unilever also has the lowest debt profile, with N2.2 billion in debt, reflecting a 23% decline and a debt-to-equity ratio of 2.25%.
- UACN reported total assets of N149 billion and shareholders’ funds of N65.445 billion, reflecting a leverage of 2.28x. Its total debt stood at N39 billion, a 6% decrease, reducing its debt-to-equity ratio to 60%.
Verdict
Unilever has the strongest balance sheet with the lowest debt and leverage, indicating the most conservative and sustainable financial position among the three companies.
Dividend history: Who rewards better?
The companies have been relatively consistent in their dividend payments over the past five years, but the size and growth of those payments vary.
- Unilever paid dividend per share of N1.25 in 2025. Since 2021, the dividend has been consistently increasing, from 50 kobo to N1.25 in 2025. The company has also paid an interim dividend of 50 kobo for the 2025 financial year. With 9M 2025 profits already surpassing the 2024 full-year profit, it’s expected that the dividend payment for 2025 will exceed that of 2024, marking another strong performance in dividend growth.
- UACN has maintained consistency but saw a decline in its dividend from 65 kobo in 2020 to 22 kobo in 2022, where it has remained constant through 2024. The acquisition of CHI Ltd may lead to higher dividends in the future.
- Transcorp has also been consistent, growing its dividend per share from 1 kobo in 2020 to 70 kobo in 2024. It has declared an interim dividend of 40 kobo for the 2025 financial year. With 9M 2025 profits nearing the 2024 full-year profit, it is expected that Transcorp will increase its dividend payout beyond what was declared in 2024.
What are they worth and what is the market really saying?
- Unilever is priced fairly with moderate growth expectations. Investors are willing to pay a reasonable amount for its earnings, assets, and sales.
- UACN is seen as a company with high growth potential, and investors are paying a premium, likely due to the expected growth from the acquisition of CHI Ltd.
- Transcorp appears undervalued relative to the other two companies, with the market possibly not fully recognizing its potential.