BUA Foods Plc has recorded profit growth of N111.5 billion after tax for the fiscal year ending December 31, 2023, as against N91.34 billion reported in the 2022 financial year, an increase of 22 per cent.
This was revealed in the company’s unaudited results released on the Nigerian Exchange Limited (NGX) showed that its profit before tax increased significantly by 12.6 per cent to N120.8 billion in 2023 compared to N107.2 billion in 2022.
BUA Food Plc with well-diversified and scalable operations recorded an impressive revenue growth of N728.5 billion, representing a 74 per cent increase compared to 2022 earnings of N418.3 billion amidst global headwinds.
Gross earnings increased by 89 per cent to N251.32 billion, with earnings per share growing by 22 per cent from N5.07 in 2022 to N6.20 at the end of 2023.
Additionally, following a slight selling price adjustment within the period under review, the gross profit margin appreciated by 280 basis points to 34.5 cents.
While commenting on the results, Ayodele Abioye, the Managing Director at BUA Foods said, “We are proud of the solid performance recorded despite a persistent and challenging macro environment.
“BUA Foods delivered strong growth despite the persistent devaluation of the naira during the period which led to a substantial and negative impact of foreign exchange losses.
Despite the margin squeeze on operating profit to 82per cent, our business remained resilient to deliver bottom-line growth of 22 per cent to N111.5 billion.
“Our expansion strategies across all frontiers continue to crystallise in supporting growth. We remained committed to accelerating alternative and local raw materials sourcing delivery across all our operating units. This includes the Backward Integration Policy project for our sugar development as a softening opportunity to rely less on forex.
“As we continue to look ahead, our integrated supply chain execution strategy will continue to be strengthened to sustain the delivery of growth across our financial metrics.
“We are confident in our plans for the year 2024 in the face of the business uncertainties. BUA Foods remains committed to creating long-term value for all stakeholders and operationalising its creed to nourish lives and promote food security.
BUA Foods’ 2023 impressive financial result was driven by a y-o-y increase of 53per per cent in Sugar revenue to N421.5 billion, 152per cent in Flour to N216.9 billion and 54 per cent in Pasta to N87.9 billion (12 months of 2022: N57.2 billion) demonstrating the Company’s resilience and commitment to excellence in its strategy, financials, capital market performance, social governance and future outlook.
Key earning drivers for 2023 include production volumes and assets growth that witnessed an outstanding 82per cent surge in operating profit, reaching an impressive N213.2 billion compared to N117.4 billion in the same period in 2022.
This remarkable growth is attributed to strategic price adjustments and a significant volume boost resulting from the successful capacity expansion of its IRS production facility. Assets also increased by 21per cent to N734 billion.
The company maintained a strong profit margin throughout the year, reflecting effective cost management and strategic financial planning.
