BUA Foods grows H1 profit by 38% as revenue hits N672.3bn

BUA Foods Plc, one of the major players in Nigeria’s food manufacturing industry has reported impressive financial results for the first half (H1) to June 30, 2024.

The company’s H1’2024 financial scorecard is marked by expanded profitability and robust revenue growth.

In the results released at the Nigerian Exchange Limited (NGX), BUA Foods Plc recorded Profit After Tax (PAT) increase by 38 percent to N130.9 billion while it grew revenue by 110 percent year-on-year to N672.3 billion.

The company said its sugar, flour, and pasta divisions contributed significantly to the top-line growth, including the commercialisation of its rice division. Its revenue grew as a result of an 88 percent rise in sugar sales, Flour – 164 percent, and 95 percent in Pasta sales.

Despite inflationary challenges, BUA Foods demonstrated resilience through cost optimisation, and operational efficiency to record profit.

The company recorded gross profit margin depreciation by 890 basis points (bps) to 32.4 percent due to the high input cost environment and further devaluation of the Naira against the US Dollar which weighed heavily on prices of raw materials.

Read also: BUA Foods proposes N5.50 final dividend as profit grows to N112.1bn

Though the company recorded an increase in gross profit by 64 percent to N218.4 billion, it logged higher costs of production, selling and distribution expenses, administrative expenses, and total operating expenses.

Other key highlights of the company’s financial performance in the first half of 2024 include a rise in earnings per share (EPS) by 37 percent to N7.27; an operating profit surge of 75 percent; and an increase in total assets by 3 percent driven largely by strategic transactions in trade and other receivables as well as capital investment.

The highlights also include a total equity increase of 50 percent and a total liability decrease of 12 percent.

While commenting on the results, Ayodele Abioye, Managing Director, BUA Foods Plc said, “The first half of the year has been one of significant resilience and achievements for our company.

“We attained 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 solid performance is a testament to the efficacy of our strategic initiatives, operational efficiency, and unwavering dedication of our board, management, and other members of staff.
“During this period, we have made significant strides in executing our strategic plans, successfully launching new products, specifically, macaroni, premium pasta, and semolina to meet the yearnings of our customers,” Abioye

“Our diversified portfolio and expansion into new markets impacted revenue growth while strengthening our partnership with key stakeholders We also maintained a strong focus on cost optimisation, resulting in sustained margins and profitability.

“Looking ahead, we remain confident in our ability to navigate the challenges and opportunities in the market. We will continue to leverage our strong and orchestrated supply chain system to deliver a great financial performance in line with our strategic vision for sustainable growth and value creation for all stakeholders,” the company’s Managing Director further said.