BUA Foods Plc, one of Nigeria’s leading food manufacturing companies, has reported N130.9 billion profit after tax (PAT) for the first half (H1) of 2024, ending June 30.
This represents an increase of 38 percent from the previous year.
This strong performance comes despite significant economic challenges in Africa’s largest economy.
The financial scorecard released at the Nigerian Exchange Limited (NGX) highlights BUA Foods’ robust revenue growth, which surged by 110 percent year-on-year to N672.3 billion.
This growth was driven by contributions from its sugar, flour, and pasta divisions as well as the successful commercialization of its rice division.
Specifically, sugar sales increased by 88 percent, flour by 164 percent, and pasta by 95 percent.
“The results from the first half of 2024 reflect a clear growth momentum despite continued challenges in the business environment,” said Ayodele Abioye, Managing Director of BUA Foods Plc.
“Particularly noteworthy is our second quarter performance with a 67 percent increase in sales year-on-year, underscoring the strength of our brands and the trust our consumers place in us.”
However, the company also faced an increase in its cost of sales due to the high input cost environment and the further devaluation of the naira against the US Dollar, which heavily impacted raw material prices.
This led to a depreciation of the gross profit margin by 890 basis points to 32.4 percent. Despite these challenges, BUA Foods demonstrated resilience through cost optimization and operational efficiency.
The company recorded a gross profit of N218.4 billion, reflecting a 64 percent increase. It also logged higher costs of production, selling and distribution expenses, and administrative expenses.
Nevertheless, BUA Foods’ strategic focus on efficiency enabled it to maintain profitability.
Key highlights of BUA Foods’ financial performance in the first half of 2024 include a rise in earnings per share (EPS) by 37 percent to N7.27, a 75 percent surge in operating profit, and a 3 percent increase in total assets driven largely by strategic transactions in trade and other receivables as well as capital investment.
The company also reported a 50 percent increase in total equity and a 12 percent decrease in total liabilities.
“The first half of the year has been one of significant resilience and achievements for our company,” Abioye commented.
“We attained a robust financial performance, with total revenue increasing by 110 percent to N672.3 billion compared to the same period last year. Our gross profit stands at N218.4 billion, reflecting a growth of 64 percent.”
Abioye attributed the company’s solid performance to strategic initiatives, operational efficiency, and the dedication of its employees.
He also highlighted the successful launch of new products, including macaroni, premium pasta, and semolina, which have met consumer demand and contributed to revenue growth.
Looking ahead, BUA Foods remains confident in its ability to navigate market challenges and opportunities.
The company plans to continue leveraging its strong supply chain system to deliver outstanding financial performance and create sustainable growth and value for its stakeholders.
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