BUA Foods Plc Reports N73.4bn Profit as Revenue More Than Doubles in 2024

BUA Foods Plc has delivered an exceptional financial performance in full-year 2024 with turnover surging by 114% to N437.45 billion, up from N204.05 billion in 2023.

The Group’s strong earnings expansion was driven by increased production capacity, improved cost efficiency and strong market demand.

Revenue Growth and Cost Management Drive Strong Earnings

• Turnover rose by 114% to N437.45 billion on higher product sales and price adjustments in response to inflationary pressures.
• Cost of sales increased by 76% to N248.15 billion, compared to N140.96 billion in 2023, indicating higher raw material and operational costs.
• Gross profit jumped 200% to N189.29 billion, up from N63.09 billion in 2023.

Operational Performance and Profitability Surge

• Operating profit soared by 237% to N174.97 billion, compared to N51.95 billion in 2023.
• Administrative expenses increased to N5.74 billion from N3.79 billion, reflecting higher staff and operational costs.
• Selling and distribution expenses rose to N10.51 billion, up from N7.76 billion, driven by higher logistics and marketing costs to support expanded sales volume.

Finance and Taxation Impact on Profitability

• Finance income stood at N48.28 million, reflecting minimal gains from interest-earning assets.
• Net finance costs improved significantly to N1.15 billion, compared to N6.70 billion in 2023, driven by lower interest expense and reduced foreign exchange losses.
• Finance exchange gains surged to N100.40 billion, up from N26.33 billion in 2023, providing a major boost to overall earnings.
• Income tax expenses stood at zero for 2024, compared to N2.32 billion in 2023, further strengthening the Group’s net earnings position.

Strong Bottom-Line Growth

• Profit before tax (PBT) increased nearly fourfold to N73.41 billion, up from N18.92 billion in 2023, demonstrating BUA Foods’ strong revenue growth and cost management.
• Net profit after tax (PAT) stood at N73.41 billion, compared to N16.59 billion in 2023, reflecting a 342% increase in net earnings.
• Earnings per share (EPS) surged to 4.08 kobo in 2024, up from 0.92 kobo in 2023, reinforcing higher returns for shareholders.

Key Takeaways

1. Revenue More Than Doubled – The 114% growth in turnover reflects strong sales expansion and improved market reach.
2. Profitability Skyrocketed – Net profit surged by 342%, driven by higher revenues, cost management, and forex gains.
3. Exchange Gains Boosted Earnings – N100.40 billion in forex gains provided a significant lift to the company’s profitability.
4. Shareholder Returns Strengthened – EPS climbed to 4.08 kobo, indicating improved earnings per share and value creation.