BUA Foods’ profit surges more than twofold to N274.9 billion

BUA Foods’ after-tax profit in 2024 more than doubled its 2023 numbers, as it hit N274.9 billion, the group’s highest ever. According to the group’s unaudited financial statement for FY 2024, the group’s PAT was 145 percent higher than the N112.1 billion recorded in FY 2023.

The group’s revenue in FY 2024 grew to N1.53 trillion, more than double the N729 billion recorded in 2023. There was a 110 percent growth in cost of sales to N985 billion, from N469 billion posted in FY 2023. This led to a slight decline in the group’s gross margin to 35 percent, from 36 percent recorded in 2023.

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Investors will also smile to the bank as the group’s earnings per share more than doubled to N15.27, from N6.23 as of 2023.

The group’s operating profit hit N489.2 billion in 2024, marking a 137 percent growth from the N206.3 billion recorded in 2023. This growth translated into an operating margin of 32 percent, from the previous year’s 28 percent. In 2024, BUA optimized its operations by selling some of its scrap equipment and rice bran which generated over N1 billion in revenue for the company. The group also ventured into businesses outside its main operations, earning ₦6.5 billion in revenue from these activities. This income was recorded under “Sundry Income.”

In 2024, the group’s bakery flour business was a huge money spinner, as its revenue surged by 172 percent to N544.9 billion, from N200.2 billion as of 2023. Although, the sugar business is still the bigger revenue contributor. The group also added maize to its income sources, as it recorded an N11.4 billion revenue from maize, and N1.9 billion from its semolina business.

The cost of raw materials doubled to N914.8 billion during the financial year, from N447.6 billion posted in 2023. Energy costs also tripled to N51.6 billion, from N14.4 billion as of 2023.

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BUA Foods is currently trading at a share price of N415. With a price-to-earnings ratio of 27.2x, BUA Foods ranks relatively as one of the cheapest trillion-Naira listed equities.