BUA Foods, a fast-moving consumer goods company in Nigeria, reported a 22 percent rise in after-tax profit, reaching N111.54 billion for the year-end 2023.
This marks an increase from N91.34 billion recorded in 2022 according to its recently unaudited financial statement.
Revenue also increased by 74 percent to N728.48 billion compared to N418.35 billion recorded in 2022.
A breakdown of the revenue showed that there was a 53 percent increase in sugar earnings to N421.5 billion, a 152 percent rise in flour sales to N216.9 billion, and a 54 percent increase in Pasta to N87.9 billion.
“This is a solid performance in the face of an unending challenging macro environment,” Ayodele Abioye, the managing director of BUA Foods said.
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“BUA Foods delivered strong growth despite the persistent devaluation of the naira during the period, which led to a substantial and negative impact of foreign exchange losses,” Abioye said.
However, cost of sales rose by 67 percent to N477.14 billion in 2023, driven by increased raw material and energy costs.
“The increase is driven by an increase in raw materials cost and energy costs. The high input cost environment and further devaluation of the Naira against the US Dollar weighed heavily on prices for raw materials. This resulted in a higher cost of production,” Abioye added.
Operating expenses saw a 20.7 percent increase to N39.73 billion, primarily due to an increase in selling and distribution expenses along the supply chain to customers.
Other income declined by 89 percent to N1.69 billion in 2023, attributed to a drop in sundry income.
In 2023, there was no finance income recorded, in contrast to N39.72 million in 2022.
Finance costs surged by 116 percent to N18.89 billion, and a foreign exchange loss of N73.56 billion was reported.
Total assets increased by 21 percent to N734.07 billion.
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BUA Foods’ cash flow for the period showed an increase in net cash from operating activities to N267 billion, compared to N124.47 billion.
Net cash used in investing activities recorded a negative amount of N38.38 billion, while net cash from financing activities had a negative value of N173.58 billion.
The company’s cash and cash equivalent for the period amounted to N82.72 billion, an increase from N27.67 billion.
“As we look ahead, our integrated supply chain execution strategy will continue to be strengthened to sustain the delivery of growth across our financial metrics. We are confident in our plans for the year 2024 in the face of the business climate uncertainties. We remain committed to creating long-term value for all our stakeholders and staying true to our creed of nourishing lives,” Abioye said.
