BUA Foods Reports 22% Increase in Profit in 2023

BUA Foods, a leading Food and Fast-moving consumer goods (“FMCG”) grew revenue by 74% from N418.348 billion in 2022 to N728.477 billion in the year ended December 31, 2023.

As expected, the cost of sales jumped 67% to N477.147 billion from N285.555 billion in the corresponding year of 2022.

This was disclosed in the company’s unaudited financial statement obtained by Investors King.

The company grew gross profit by 89% to N251.329 billion, largely due to the success recorded in revenue.

Despite the surge in selling and distribution expenses by 98% from N14.185 billion to N28.035 billion in 2023, administrative expenses was reduced by 38% from N18.734 billion in 2022 to N11.698 billion in 2023.

This supported operating profit as it grew by 82% to N213.291 billion, up from N117.492 billion.

BUA Foods’ finance cost rose by 116% while foreign exchange loss stood at N73.561 billion in the year under review.

These two dragged on operating profit. Still, profit before tax increased by 12.6% to N120.831 billion.

After paying N9.294 billion in income taxes, BUA Foods posted N111.537 billion profit after tax, a 22% growth from N91.344 billion filed in 2022.

Commenting on the results, Engr. (Dr.) Ayodele Abioye, the Managing Director, said: “This is a solid performance in the face of an unending 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 82%, our business remained resilient to deliver bottom line growth of 22% to N111.5Bn.

“Our expansion strategies across all frontiers continue to crystallize in supporting growth. We remained committed to accelerating delivery in alternative and local raw materials sourcing across all our operating units, this is including the BIP project for sugar development as a softening opportunity to rely less on forex.

“As we 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 climate uncertainties.

“We remain committed to creating long term value to all our stakeholders and staying true to our creed of nourishing lives.”