Uniwax Posts First Net Profit in Three Years After Asset Sale
TLDR
- Ivorian textile company UniWax (BRVM: UNXC) reported a net profit of 8.2 billion CFA francs ($13.8 million) for Q1 2025, reversing three consecutive years of losses
- The turnaround was driven by a capital gain of 8.54 billion CFA francs from the sale of its industrial land in Yopougon under a sale-leaseback agreement
- Revenue rose 14% year-on-year to 7.84 billion CFA francs, buoyed by a recovery in Nigerian and Guinean markets and reinforced distribution networks
Ivorian textile company UniWax (BRVM: UNXC) reported a net profit of 8.2 billion CFA francs ($13.8 million) for Q1 2025, reversing three consecutive years of losses. The turnaround was driven by a capital gain of 8.54 billion CFA francs from the sale of its industrial land in Yopougon under a sale-leaseback agreement. The company continues operations on the premises.
Revenue rose 14% year-on-year to 7.84 billion CFA francs, buoyed by a recovery in Nigerian and Guinean markets and reinforced distribution networks. Despite this, ordinary operations still posted a loss of 329 million CFA francs, though it marks a 72% improvement from Q1 2024.
The asset disposal and optimization in logistics and production helped clean up the balance sheet, following a challenging 2023 when UniWax recorded a loss of 2.03 billion CFA francs. Shares are currently trading at 395 CFA francs, having declined over 10% in the past six months.
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Key Takeaways
While the Q1 profit offers temporary relief, analysts remain cautious due to its reliance on a one-time asset sale. The improvement in operational losses is encouraging, yet UniWax must demonstrate sustained revenue growth and cost efficiency for a durable recovery. The company’s cultural brand equity in Côte d’Ivoire and signs of demand recovery in key West African markets provide some support. However, regional consumption remains fragile, and sociopolitical instability in West Africa continues to weigh on outlooks. Operational discipline and strategic asset reallocation are now central to UniWax’s turnaround strategy. Still, market sentiment remains tentative, with the stock showing limited upside amid earnings uncertainty.
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