BUA Foods Plc, a prominent food business, revealed impressive unaudited financial results for the 12-month period ending December 31, 2023. The company showcased remarkable growth, defying adverse macroeconomic conditions, including persistent Naira devaluation. Despite facing challenges, BUA Foods achieved a remarkable 22% increase in Profit After Tax, reaching N120.8 billion.

Financial Highlights

Revenue soared by 74% to NGN728.5 billion in 12M 2023, from NGN418.3 billion in 12M 2022. The significant growth was attributed to a 53% increase in Sugar revenue, 152% surge in Flour revenue, and a 54% rise in Pasta revenue.
Cost of sales increased by 67% to NGN477.14 billion in 12M 2023, driven by higher raw materials and energy costs due to Naira devaluation.
Gross profit surged by 89% to NGN251.32 billion in 12M 2023, with the gross margin improving to 34.5%.
Operating profit grew by 82% to NGN213.2 billion in 12M 2023, benefiting from top-line growth driven by price adjustments and volume increase.
Profit before tax increased by 12.6% to NGN120.8 billion in 12M 2023, with the effective tax rate declining to 7.7%.
The company also witnessed substantial growth in total assets, total equity, and total liabilities.

Business Segments Performance

Sugar Division:
Contributed 58% to total revenue in 12M 2023, with revenue growing by 53% to NGN421.5 billion, driven by price adjustments and a marginal increase in sales volume.

Flour Division:
Accounted for 30% of total revenue in 12M 2023, with revenue increasing by 152% to NGN216.9 billion, attributed to volume increase and price adjustments.

Pasta Division:
Contributed 12% to total revenue, with revenue growing by 54% to NGN87.9 billion in 12M 2023, supported by the commissioning of new production lines and an increase in production volume.

Rice Division:
Generated N2.1 billion in revenue in 12M 2023, facing challenges in the paddy supply chain for rice production.

Significant Financial Metrics

EBITDA increased by 81% to NGN223.3 billion in 12M 2023, and operating profit margin appreciated by 100 basis points to 29%.
Return on equity rose to 42.6% in 12M 2023, reflecting the company’s solid performance in delivering value to stakeholders.

Outlook and Future Plans

Engr. (Dr.) Ayodele Abioye, the Managing Director of BUA Foods, expressed confidence in the company’s strategic expansion plans amid uncertainties in the business climate. The company remains committed to creating long-term value for all stakeholders and sustaining growth across its financial metrics.

About BUA Foods Plc

BUA Foods Plc (NGX: BUAFOODS) is a leading food business with diversified operations in sugar, flour, pasta, rice, and edible oils. The company is dedicated to leveraging modern technology and strategic partnerships to drive efficiency and innovation in food production.

Overall, BUA Foods’ resilient growth and commitment to delivering high-quality products position it as a significant player in the African food industry.

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