BUA Foods Plc has achieved a 38% increase in profit after tax, reaching N130 billion. This contrasts with N95.18 billion recorded during the same period in 2023. The company announced these results in its latest financial report filed with the Nigerian Exchange Limited.
The company’s revenue surged by 110% to N672.3 billion, up from N320.9 billion last year. This increase stems from outstanding performances in its sugar, flour, and pasta divisions.
Sugar sales alone jumped 88% to N369.7 billion, up from N196.5 billion in the first half of 2023. Flour sales grew even more, rising by 164% to N227.9 billion compared to N86.05 billion. Pasta sales increased by 95%, reaching N74.03 billion from N37.9 billion.
Gross profit also saw a substantial rise of 64%, reaching N218.4 billion. This was driven by higher sales across the company’s product lines. Operating profit climbed 75% to N202.3 billion, reflecting better operational efficiency.
Despite rising costs, with the cost of sales jumping 141% to N453.9 billion, BUA Foods expanded its asset base. Total assets increased by 3.3% to N1.11 trillion.
Managing Director Ayodele Abioye praised the company’s resilience and achievements in the first half of the year. “The first half of the year has been one of significant resilience and achievements for our company.
“We attained a robust financial performance, with total revenue increasing by 110 per cent to N672.3bn compared to the same period last year.
“Our gross profit stands at N218.4bn, reflecting a growth of 64 per cent. This solid performance is a testament to the efficacy of our strategic initiatives, operational efficiency, and unwavering dedication of our board, management, and other members of staff.
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Looking Ahead
For the second half of the year, Abioye expressed confidence in navigating market challenges. He mentioned that the company will leverage its efficient supply chain to maintain strong financial performance and achieve sustainable growth.
Since December 2023, BUA Foods’ shares have surged by 96.43%, from N193.4 to N379.9 per share. This increase significantly outpaces other consumer goods stocks.
Unilever Nigeria’s shares have risen by 21.28%, while Flour Mills Plc’s shares have grown by 39.18%. In contrast, stocks like Nascon Allied Industries and Nestle Nigeria have declined.
Analysts attribute BUA Foods’ success to its diversified portfolio and expansion into new markets, which have positively impacted its revenue growth.