Uniwax Stunned as Tax Reversal Wipes Out 2025 Profit!

Uniwax Côte d’Ivoire, a BRVM-listed wax print maker, concluded 2025 with a significant net loss of 624 million CFA francs, a stark reversal from earlier quarterly reports that had indicated a profitable year. Initially, the company reported a net income of 8.2 billion CFA francs in the first quarter, largely propelled by the strategic sale of industrial land located in Yopougon. This initial financial performance led to a pre-tax profit of approximately 9.06 billion CFA francs for the year, with total revenue reaching 7.84 billion CFA francs. Correspondingly, Uniwax's share price saw a considerable rise, moving from around 410-420 CFA francs at the beginning of the year to over 1,800 CFA francs.

The dramatic shift from profit to loss stemmed directly from the specific tax treatment applied to the capital gain derived from the land sale. Following an agreement signed on February 3, 2026, with COIC, Uniwax opted to place this gain under Article 28 of Côte d’Ivoire’s tax code. This particular article offers tax relief on fixed-asset gains, provided the funds are reinvested within a three-year period. Consequently, the capital gain was reclassified and moved out of distributable profit, instead being recorded as a regulated provision designated for future investment.

Upon this crucial adjustment, the company's pre-tax result transformed into a loss of 589 million CFA francs. The application of corporate tax further deepened this deficit, culminating in the final reported net loss of 624 million CFA francs. The financial accounts reflecting these changes were duly audited by FIDA Expert and KPMG, ensuring their validity.

This financial re-evaluation coincides with a significant change in ownership, as COIC assumes control of Uniwax from its Vlisco-linked shareholders. This transfer encompasses 15 million shares, representing 72.3% of Uniwax’s capital and voting rights. The immediate challenge for the new ownership and governance under COIC will be to effectively utilize the substantial 9 billion CFA francs provision for its intended purpose: factory upgrades, addressing supplier debts, and enhancing working capital, thereby aiming to restore earnings from the core business operations.

For shareholders and BRVM investors, Uniwax’s 2025 loss underscores an important distinction: while the land sale undeniably generated a significant cash event and created resources, the company’s ordinary business operations remained under pressure, exhibiting negative operating results throughout the year. The reported loss will be allocated to retained earnings, which now show a debit balance of 6.17 billion CFA francs, alongside legal reserves standing at 830 million CFA francs and free reserves at 5.33 billion CFA francs. This case highlights how headline profits can be misleading when driven by non-operating gains. The focus for investors now shifts decisively to the audited statements, the strategic use of cash, planned factory investments, and the new board's comprehensive plans for sales, cost management, and margin improvement.