BUA Foods Grows Profit by 38% to N131bn
One of Nigeria’s top food producers, BUA Foods Plc, saw its earnings performance improve in the first half of 2024 as the consumer goods company revealed sparkling growth in its topline.
In its unaudited financial statement published on the Nigerian Exchange, BUA Foods Plc grew profit by 38% year on year to about N131 billion from N95.18 billion in the comparable period in 2023. This translates to 37% year on year growth in earnings per share, from N5.29 to N7.27.
The company’s revenue climbed by 110% year on year to N672.3 billion in the period, up from ₦320.9 posted at the end of the first half of 2023. This was due to a year-on-year increase of 88% in sugar sales, which settled at ₦369.7 billion from ₦196.5 billion in the first half of 2023.
The company’s revenue growth was also supported by 164% growth in flour sale, which clicked at ₦227.9 billion from ₦86.05 billion. Food Company also saw a 95% year on year growth in Pasta sales to ₦74.03 billion from ₦37.9 billion.
Costs of sales however accelerated faster, reducing BUA Foods gross margin to 32.5% from 41.14% in the comparable period. Specific details showed that cost of sales climbed by more than 141% year on year to N453.94 billion at the end of first half of 2024 from N188.907 billion 12 months earlier
The company’s administrative expenses along with selling and distribution overhead raised its total operating expenses in the period. However, BUA Foods saw added income advantage from 1268% year on year growth from other income line which settled at N12.658 billion.
Net finance costs rose sharply in the first half of 2024, according to the company’s earnings scorecard, up by 65% to N10.406 billion from N6.3 billion.
This was propelled by a spike in finance costs item, up by 211% year on year from N6.3 billion to N19.6 billion – excluding losses sustained from the exchange rate fluctuation.
BUA Foods also lost about N55 billion as a result of naira devaluation. Then profit before tax grew by 25.42% to N137.188 billion in the period from N109.381 billion.
The company’s reduced tax payments lifted its bottom line. Profit after tax grew by 38% to ₦130.9 billion in the first six months of 2024 from ₦95.1 billion. The net profit margin slumped to 19.5% from 29.7% in the previous 12 months. #BUA Foods Grows Profit by 38% to N131bn New D-G PenCom Assumes Duty
