BUA Foods Hits Record High on 5.02% Free Float
With 5.02% free float in display, BUA Foods Plc, hit a record high in the equities market as investors returned to take position. About 95% of BUA Foods is concentrated within its founder, and directors reach but the company claims it met the NGX free float requirement.
Abdulsamad Rabiu CFR, CON controls 89.55% of BUA Foods in the local bourse, in addition to indirect shareholdings of 2,78%, representing BUA Industries Limited. Also from the billionaire dynasty, Rabiu Isyaku has 2,63% in BUA Foods, leaving 5.02% available for others.
“BUA Foods Plc with a free float value of N353,036,561,650 as at 31 December 2024 is compliant with the Nigerian Exchange Group’s free float requirements for companies on the Main Board”, BUA declared in its unaudited financial statement submitted on the Nigerian Exchange.
On Friday, BUA Foods market value surged by about 12% due to favourable market activities. The stock had plunged by 10% in the previous week but swiftly recovered. Data from the Nigerian Exchange showed the BUA Foods share price climbed by 11.9%, closing the week at N418 from N373.50 at the beginning of trading sessions. The fast moving consumer goods company’s market value rose to N7.524 trillion, spread over its 18 billion shares outstanding on the Nigerian Exchange.
2024 Earnings
BUA Foods revenue grew by 109.3% year-on-year to ₦1.53 trillion in 2024 from ₦729.44 billion in 2023 amidst price adjustment on product and volume surge.
Breakdown revealed that revenue from sugar segment surged by 74% to ₦733.8 billion from ₦422.8 billion in 2023. Also, sales revenue from Flour business increased by 172% to ₦589.5 billion from ₦216.7 billion, Revenue from Pasta line surged by 125% to ₦197.6 billion from ₦87.8 billion in 2023
In 2024, BUA Foods cost of sales increased by +110% to ₦984.98 billion from ₦468.98 billion, a development that was driven primarily by higher raw materials and energy cost. The company noted that the continued devaluation of the Naira against the US Dollar significantly impacted raw material prices, leading to increased production costs.
Its gross profit increased by 108% to ₦541.71 billion from ₦260.46 billion in the comparable year. Albeit, gross profit margin decreased slightly by 22bps to 35.5% from 35.7% in 2023 due to the increase in input costs.
BUA reported that its selling and distribution expenses increased by 33.4% to ₦39.83 billion due to huge increase in cost of diesel within the period. Also, Administrative expenses jerked up by 17.8% to ₦20.28 billion from ₦17.21 billion in the year 2023.
Hence, its total operating expenses climbed by 28% to ₦60.11 billion due to the rise in selling and distribution costs across the supply chain to customers.
The consumer goods company’s operating profit grew by 137.1% to ₦489.19 billion in 2024, capitalizing on revenue growth fueled by price adjustments and higher sales volumes, driven by increased demand for flour and pasta products.
In the period, the company reported that its finance charges grew by 15.1% to ₦21.65 billion from ₦18.81 billion as a result of additional drawdowns and higher banking transaction volumes during the period.
BUA reported a significant increase in the bottom line, helped by stronger top line performance amidst rising competition in a tight economy. Pretax profit inched higher by 167.3% to ₦289.07 billion in 2024, from ₦108.14 billion. Data showed that pretax profit margin also increased by 411bps to 18.9% from 14.8% 12 months earlier.
Profit after tax soared by 145.2% to ₦274.95 billion versus ₦112.09 billion the group posted in 2023. #BUA Foods Hits Record High on 5.02% Free Float Federal Government Takes Ownership of Keystone Bank
