Despite the macroeconomic challenges, BUA Foods Plc reported a 38% increase in profit after tax to N130 billion at the end of June 2024, up from N95.18 billion in the same time in 2023.
Its financial statistics for the first half of the year, which were recently submitted to the Nigerian Exchange Limited, showed this.
According to the financial report made available to BrandSpur’s local brand news, the company’s revenue increased by 110% to N672.3 billion from N320.9 billion in 2023, mostly because to its pasta, sugar, and flour divisions’ impressive success.
The report states that the growth was caused by an 88% year-over-year increase in sugar sales to N369.7 billion from N196.5 billion in the first half of 2023, a 164% increase in flour sales to N227.9 billion from N86.05 billion in the same period last year, and a 95% increase in pasta sales to N74.03 billion from N37.9 billion in the same period last year.
Increased sales across all of its product categories drove a 64% increase in gross profit to N218.4 billion. Additionally, operating profit increased by 75% to N202.3 billion as a result of increased operational effectiveness.
Nonetheless, the business had to contend with growing expenses, as the cost of sales increased by 141% to N453.9 billion. In spite of this, BUA Foods was able to grow its asset base, as seen by the 3.3% increase in total assets to N1.11tn.
Ayodele Abioye, Managing Director of BUA Foods, had this to say on the outcomes. He 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 per cent to N672.3bn compared to the same period last year. Our gross profit stands at N218.4bn, reflecting a growth of 64 per cent. 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. 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,” Abioye added.
Speaking further, he spoke on projection for the second half, saying: “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 shares of BUA Foods increased in value from N193.4 to N379.9, or 96.43 percent, between December 2023 and August 2. In contrast, the year-to-date returns for comparable consumer goods stocks are higher at Unilever Nigeria (+21.28%), Flour Mills Plc (+39.18%), Nascon Allied Industries (-39.81%), Nestle Nigeria (-24.55%), Nigerian Breweries (-22.22%), Dangote Sugar (-34.82%), International Breweries (-12.50%), and Guinness (-8.33%).
However, the diverse portfolio and fresh market entry of BUA Foods, according to analysts, had an effect on the company’s revenue growth.
