BUA Foods Declares 22% Growth in Profit to N111.5bn

BUA Foods Plc has announced A profit after tax of N111.5billion for the fiscal year ending December 31, 2023 as against N91.34 billion reported in 2022 financial year, an increase of 22 per cent

The company’s unaudited results announced on the Nigerian Exchange Limited (NGX) showed that its profit before tax that increased significantly by 12.6 per cent to N120.8 billion in 2023 compared to N107.2 billion in 2022. The leading food business with well-diversified and scalable operations recorded an impressive revenue growth of N728.5 billion, representing a 74 per cent increase compared to 2022 earnings of N418.3 billion amidst global headwinds.

Gross earnings increased by 89 per cent to N251.32 billion, with earnings per share growing by 22 per cent from N5.07 in 2022 to N6.20 at the end of 2023.

Additionally, following a slight selling price adjustment within the period under review, the gross profit margin appreciated by 280 basis points to 34.5per cent. BUA Foods’ 2023 impressive financial result was driven by a y-o-y increase of 53per cent in Sugar revenue to N421.5 billion, 152per cent in Flour to N216.9 billion and 54 per cent in Pasta to N87.9 billion (12months of 2022: N57.2 billion) demonstrating the Company’s resilience and commitment to excellence in its strategy, financials, capital market performance, social governance and future outlook.

Key earning drivers for 2023 include production volumes and assets growth that witnessed an outstanding 82per cent surge in operating profit, reaching an impressive N213.2 billion compared to N117.4 billion in the same period in 2022.

This remarkable growth is attributed to strategic price adjustments and a significant volume boost resulting from the successful capacity expansion of its IRS production facility. Assets also increased by 21per cent to N734billion.

The company maintained a strong profit margin throughout the year, reflecting effective cost management and strategic financial planning. BUA Foods also witnessed a dynamic performance across its operating segments, showcasing a strategic and diversified approach to revenue generation. Despite varying revenue growth across each division, BUA Foods has demonstrated a cohesive strategy, leveraging market dynamics to achieve impressive financial results.