BUA Foods grows profit by 97% with gains from sugar business

BUA Foods builds profit with gain from its sugar business in its 2021 full year financial result, analysis by BusinessDay has shown.

Profit jumped a massive 97 percent to reach N69.7 billion in 2021 compared to N35.4 billion recorded in 2020.

The Food and Fast-moving consumer goods (FMCG) company saw a boost in its revenue to N333.2 billion in December 2021, a 73 percent increase from N192.8 billion in December 2020.

The Company derives revenue from the transfer of goods at a point in time in the major product categories.

BUA Foods’ top three major products which contributed the highest to its revenue includes the sales – sugar (fortified), sales – sugar (non-fortified) and sales – bakery flour which contributed N129.8 billion, N79.15 billion, N64.19 billion respectively.

Also the least three contributors to the total revenue includes sales – molasses (N439 million), sales – bran (N5.24 billion) and sales – pasta (N54.4 billion).

BUA Foods Group examines performance from a product perspective and has identified four operating segment in its business including flour, sugar, pasta and others which contributed N4.08 billion, N46.9 billion, N14.9 billion, N3.7 billion contribution to its profit after tax of N69.7 billion in 2021.

Read also: Taking Nigeria’s sugar industry to next level

Cost of sales grew 78 percent to N230.3 billion in December 2021 from N129.2 billion in the previous year.

Administrative expenses rose to N14.6 billion in 2021 from N10.4 billion in 2020.

BUA Foods staff cost increased to N3 billion from N2 billion in the comparable periods.

Other income stood at N1.5 billion in 2020 and 2021.

The FMCG company increased its selling and distribution expenses to N10.13 billion from N4.01 billion in the period under review.

Finance income increased to N2.9 billion compared to N31 million in the previous year while the company’s finance cost stood at N5.04 billion in 2021 as against N3.6 billion in 2020.

Total assets grew 58 percent to N593.4 billion from N374.3 billion in the period under review.

Inventories climbed 22 percent to N25 billion in December 2021 as against N20.4 billion in December 2020.

The FMCG company increased borrowing to reach N246 billion compared to N128.2 billion in the period under review.

Net cash generated from operating activities dropped to N871.7 million in 2021 from N79 billion in 2020.

Net cash used in investing activities recorded a year on year loss of N104.4 billion in 2021 from N81.3 billion in 2020.

Net cash generated from financing activities increased to N114.8 billion compared to N17.4 billion in the period under review.

Earnings per share of the company stood at N4.24 from N1.97 in the comparable periods.

BUA Foods is a Food and Fast-moving consumer goods (FMCG) business which processes, manufactures, and distributes food produce. Our business operations consist of five divisions, including Sugar, Flour, Pasta, Rice, and Edible Oils.