BUA Foods grows profit to N112bn in 2023 despite FX Loss

BUA Foods has reported a profit after tax (PAT) of N112.1 billion for the fiscal year 2023 representing a 22.7 per cent increase from the previous year’s figure of N91.3 billion. This impressive growth comes in the face of an FX loss amounting to N81.9 billion, attributable to the devaluations of the Naira.

According to the Group’s audited financial statement filed on the Nigerian Exchange Group (NGX), its revenue soared 74.4 per cent reaching N729.4 billion from the N418.3 billion reported in 2022. The growth was fueled by a substantial increase in sales across various product lines, including bakery flour, fortified sugar, and the successful introduction of BUA Rice to the market.

Fortified sugar emerged as the primary revenue driver for the group, with sales soaring to N339.7 billion, a 162.8 per cent increase from the previous year’s N129.2 billion. Similarly, revenue from bakery flour grew to N200.2 billion, a 151 per cent increase from N79.7 billion in 2022. Additionally, the group recorded N2.1 billion in revenue from its rice business. The statement reveals that a significant portion of the group’s revenue, accounting for 95.5 per cent was generated from sales within Nigeria, indicating a strong domestic market presence.

Despite the impressive revenue growth, the company experienced a substantial rise in the cost of sales, primarily driven by a significant increase in the cost of raw materials consumed. Expenditure on raw materials surged to N447.6 billion in 2023, a 72 per cent rise from the previous year’s N260.2 billion.

The Group’s gross profit amounted to N260.46 billion, reflecting a 96.1 per cent improvement YoY and its total assets reaching N1.07 trillion in 2023, a substantial increase from the previous year’s N607.22 billion.

The Board of Directors has recommended a dividend payment of N5.50 per ordinary share of 50 kobo, compared to N4.50 declared in the previous year.