BUA Foods Plc, a leading player in Nigeria’s food manufacturing sector, has reported a profit of N672.3 billion for the first half (H1) ending June 30, 2024. This period was characterized by significant profitability and substantial revenue growth.
According to the financial results recently released at the Nigerian Exchange Limited (NGX), BUA Foods Plc recorded a 38 percent increase in Profit After Tax (PAT) to N130.9 billion and a year-on-year revenue growth of 110 percent, reaching N672.3 billion.
The company’s sugar, flour, and pasta divisions were major contributors to this top-line growth, alongside the commercialization of its rice division. Sugar sales rose by 88 percent, flour sales by 164 percent, and pasta sales by 95 percent.
Despite facing inflationary pressures, BUA Foods showed resilience through cost optimization and operational efficiency, leading to a solid profit margin. However, the gross profit margin declined by 890 basis points to 32.4 percent due to high input costs and the further devaluation of the Naira against the US Dollar, impacting raw material prices.
The company achieved a 64 percent increase in gross profit to N218.4 billion, though it faced higher production costs, selling and distribution expenses, administrative expenses, and overall operating expenses.
Other key highlights from the first half of 2024 include a 37 percent rise in earnings per share (EPS) to N7.27, a 75 percent surge in operating profit, and a 3 percent increase in total assets driven by strategic transactions in trade and receivables as well as capital investment. Total equity increased by 50 percent, while total liabilities decreased by 12 percent.
Commenting on the results, Ayodele Abioye, Managing Director at BUA Foods Plc, stated, “The first half of the year has been marked by significant resilience and achievements for our company. We achieved a robust financial performance, with total revenue increasing by 110 percent to N672.3 billion compared to the same period last year. Our gross profit stands at N218.4 billion, reflecting a growth of 64 percent.
“This strong performance underscores the effectiveness of our strategic initiatives, operational efficiency, and the unwavering dedication of our board, management, and staff. During this period, we have made significant progress in executing our strategic plans, successfully launching new products such as macaroni, premium pasta, and semolina to meet our customers’ needs.
“Our diversified portfolio and expansion into new markets have driven revenue growth while strengthening our partnerships with key stakeholders. We also maintained a strong focus on cost optimization, resulting in sustained margins and profitability.
“Looking ahead, we remain confident in our ability to navigate market challenges and opportunities. We will continue to leverage our robust supply chain system to deliver exceptional financial performance in line with our strategic vision for sustainable growth and value creation for all stakeholders,” Abioye added.
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