BUA Foods Plc, one of Nigeria’s leading food and beverage companies, has announced its financial results for the year 2022, showing an impressive performance despite challenges faced by the industry.
According to the company’s financial statement obtained by Investors King, BUA Foods recorded a profit after tax of N91.3 billion in 2022, which represents a 31 percent increase from N69.8 billion achieved in the previous year.
The firm’s net profit margin also improved to 22 percent from 21 percent in the reviewed period.
The revenue from contracts with customers grew by 26 percent to N418.3 billion, driven largely by sales of non-fortified sugar, fortified sugar, and bakery flour. Other line items that contributed to the overall revenue are sales of pasta, sales of bran, and sales of molasses.
The cost of sales increased by 24 percent to N285.6 billion, which is largely attributable to cost of raw materials consumed and factory production overhead. The high input cost environment and further devaluation of the naira against the US dollar weighed heavily on prices for raw materials, resulting in a higher cost of production.
However, BUA Foods’ gross profit climbed 29 percent to N132.8 billion in 2022 from N103 billion in 2021, leading to a 32 percent gross margin, up from 31 percent in the previous year. The firm’s operating profit rose to N117.5 billion, up 47 percent from N79.9 billion, which resulted in its operating profit margin of 28 percent in 2022, a 400 basis-point increase from 24 percent in 2021.
The company’s return on assets grew to 69 percent in 2022 from 56 percent in 2021, while BUA Foods’ return on equity stood at 181 percent, up from 166 percent in the period reviewed. Its quick ratio stood at 81 percent in 2022, compared to 72 percent in 2021, while its current ratio rose to 91 percent from 79 percent in the comparable period.
Despite rising interest rates during the period reviewed, BUA Foods’ debt-to-equity ratio dropped to 80 percent from 109 percent, while its debt ratio was at 35 percent, down from 41 percent.
In terms of cash flow, the movement in the firm’s cash and cash equivalents revealed net cash generated from operating activities amounted to N124.5 billion, a 43 percent increase from N871.7 million in 2021. Net cash used in investing activities recorded a negative cash flow of N15.4 billion, down from N104.4 billion negative cash flow in the comparable period, while net cash generated from financing activities recorded a negative of N108.8 billion as against a positive cash flow of N114.8 billion.
Overall, BUA Foods Plc’s financial year 2022 results demonstrate its resilience and ability to navigate challenges in the food and beverage industry while still achieving impressive growth.
