BUA Foods Plc, one of the fastest-growing food companies in West Africa, grew revenue by 104% in the period ended September 30, 2024 to N1.070 trillion from N524.48 recorded in the same period in 2023.

The company’s cost of sales also inched higher to N736.975 billion, a 116% from N349.648 billion filed in the corresponding period of 2023 while gross profit rose by 82% to N333.820 billion.

BUA Foods spent 45% more on selling and distribution expenses at N29.319 billion in the period under review from N20.273 billion.

Also, more money was spent on administration as administrative expenses jumped 84% from N7.913 billion to N14.545 billion. During the period, the company spent N43.862 billion on operating expenses, representing a 56% increase from the N28.185 billion spent in 2023.

Still, the 104% increase in revenue bolstered operating profit by 101% to N315.126 billion from N156.883 billion in 2023.

Loss due to foreign exchange fluctuation dragged on the company’s profit before income tax in the first nine months of the year as N87.961 billion was lost due to Naira devaluation to contain profit before tax at N215.657 billion.

Profit after tax increased by 91% from N105.618 billion in 2023 to N201.389 billion.

Commenting on the results, Engr. (Dr.) Ayodele Abioye, the Managing Director, said “We are thrilled to have sustained a remarkable growth trajectory, underscoring the impact of our strategy, innovative product development, and steadfast commitment to quality, even in the face of a challenging business climate.

“Revenue grew by 104% to N1.07 Trillion compared to the same period last year, while our gross profit stands at N333.8 billion, reflecting a growth of 82%. We saw the benefits of our production capacity expansion and product innovation, as we witnessed an 11% growth in aggregate volume which has further strengthened our position within the industry.

“Looking ahead, we will remain steadfast in addressing current food supply challenges by leveraging newly commercialized supply chain assets across our business divisions. We would maintain focus on driving internal efficiencies for business growth towards delivering long-term shareholder value.

“We thank our stakeholders, particularly our customers, and consumers for their love for the brand even as we continue to nourish lives.”

The founder and Chief Executive of Dangote Group, Aliko Dangote, has urged the Nigerian National Petroleum Company (NNPC) and independent oil marketers in Nigeria to halt petrol imports and source the product from his Lagos refinery.

Dangote made this appeal on Tuesday at the State House, Abuja, while addressing Nigeria’s fuel scarcity issue after a meeting with President Bola Tinubu.

According to the business mogul, the country should not rely on petrol imports when his refinery has over 500 million litres in storage.

Investors King reported that oil dealers in Nigeria resumed importing petrol from abroad, claiming Dangote’s refinery could not meet demand. The marketers said they turned to foreign refiners to avert fuel shortages.

During the press briefing at the State House, however, Dangote emphasized that he should not be blamed for the scarcity or the long queues at petrol stations, as he is only a producer, not a retailer.

Dangote revealed that the NNPC’s reluctance to buy from his refinery costs him money daily.

He explained, “We are producers. I have a refinery. I’m not in the business of retail. If I were, then you could hold me responsible. But what I’m saying is that the retailers should please come forward and pick up the supply. If they don’t, what do you expect me to do? There is nothing I can do.”

“I expect either the NNPC or marketers to stop importing and collect the supply we have here. Keeping millions of litres in storage costs me daily,” Dangote added.

Fuel scarcity has plagued Nigeria since Bola Tinubu announced the end of the fuel subsidy upon assuming office. Despite the establishment of Dangote Refinery in Lagos, Nigerians hoped that petrol scarcity would soon be a thing of the past. While the refinery promised 650,000 barrels per day, the problem persists with no end in sight.

Dangote Cement reported sluggish profit growth as profit after tax inched slightly higher by 0.6% by N279.1 billion in the first nine months ended September 30, 2024.

In the company’s unaudited financial statements obtained by Investors King, group revenue rose 69.1% to N2.560 trillion while EBITDA appreciated 37.1% to N908.7 billion.

Earnings per share appreciated by 2.9% to N16.55 and net debt stood at N1.050 trillion. See other details below.

Dangote Cement Financial highlights

• Group revenue up 69.1% to ₦2,560.6B
• Group EBITDA up 37.1% to ₦908.7B; 35.5% margin
• Nigeria EBITDA up 37.3% to ₦697.4B; 45.5% margin
• Pan-Africa EBITDA up 45.4% to ₦247.1B; 22.6% margin
• Profit after tax up 0.6% at ₦279.1B
• Earnings per share up 2.9% at ₦16.55
• Net debt of ₦1,050.5B; net gearing of 48.6%

Operating highlights

• Group volumes up by 1.9% to 20.7Mt
• Rebound in Nigeria volumes, up 9.5% to 13.2Mt
• Exported 22 ships of clinker from Nigeria to Ghana and Cameroon
• Nigeria cement and clinker exports up 75.5% at 873Kt ESG highlights
• Commissioned 11 of the 17 Alternative Fuel Projects across the Group
• Arrival of 1500 full CNG trucks to support cost saving initiatives

Arvind Pathak, Chief Executive Officer, said: “Our financial results for the nine months period demonstrate superior performance across key metrics, as we diligently execute our strategic priorities for the year. Group volumes grew by 1.9% year-on-year to 20.7Mt, largely due to a significant rebound in Nigeria. This growth was supported by promotional activities and enhanced route-to-market solutions, which helped mitigate the impact of adverse
weather conditions.

Despite the challenges of elevated inflation, high borrowing costs, and further currency depreciation that characterized the nine-month period, our business showed remarkable resilience. This was achieved through a strong focus on cost minimisation and our diversified business model.

Group revenue surged by 69.1% to ₦2,560.6 billion, while EBITDA increased by 37.1% to ₦908.7 billion. As such, PAT closed at ₦279.1 billion, a modest 0.6% increase on the back of FX loss. Both our revenue and EBITDA for the nine-month period have already exceeded our full-year 2023 performance, with additional growth potential anticipated in the last quarter. I am pleased with the Company’s overall performance, as key financial indicators are
showing positive trends.

Leveraging our robust export-to-import strategy, Dangote Cement successfully completed 22 shipments of clinker from Nigeria to Ghana and Cameroon. This effort resulted in a 75.5% increase in our Nigerian exports, highlighting our commitment to promoting Africa cement self-sufficiency.

Looking ahead, our key focus remains on enhancing efficiency and delivering greater value. We will continue to prioritise innovation, cleaner energy transition, and cost leadership towards achieving our vision of transforming Africa and building a sustainable future.”