BUA Foods Plc Announces N728.5 Billion in Revenue

Despite different macroeconomic challenges, BUA Foods Plc reported an impressive increase in its revenue, which grew the company's profit and positively impacted shareholders' returns. However, the company has yet to announce dividend pay to existing shareholders.

In the period under review, the firm said it got N728.5 billion in revenue, representing an increase of 74% from the previous year, which settled at N418.3 billion in the 2022 financial year.

BUA Foods Plc's revenue growth was due to the N421.5 billion generated from its Sugar business in 2023 from the corresponding year, which settled at N275.2 billion in 2022. This contributed to over 58% of the revenue generated in 2023 from the previous year, which stood at 66%.

BUA Foods Plc's revenue from the flour segment rose to N216.9 billion in 2023 from the corresponding year, which settled at N85.9 billion in 2022, while Pasta revenue rose to N87.9 billion, which signifies a 57% increase from the records of 2022, which stood at N57.2 billion.

BUA Foods Plc reported that it got N477.14 billion cost of sales in 2023, which signifies an increase of 67% from the corresponding year, which got N285.55 billion in 2022. 

The high input cost environment and further devaluation of the Naira against the US Dollar weighed heavily on prices for raw materials. This resulted in a higher cost of production.

BUA Foods Plc's gross profit rose by 89% to N251.32 billion in 2023 as against N132.79 billion earned in 2022. The company's gross profit margin increased by 280 basis points to 34.5% in 2023 from 31.7% due to the little adjustment in the selling price within the year.

BUA Foods Plc's total operating expenses rose by 20% to N39.7 billion in 2023 compared with N32.9 billion in 2022.

BUA Foods Plc's total operating expenses show that selling and distribution expenses rose by 98% to N28 billion in 2023 from N14 1 billion that was reported in 2022 due to the increased cost of diesel within the period.

BUA Foods Plc operating expenses and administrative expenses closed 2023 at N11.6 billion, showing a decline of 38% from N21 billion reported in 2022, which is said to be driven majorly by the decrease in general expenses (-58%) to N2.23 billion in 2023 from N5.38 billion reported in 2022.

BUA Foods Plc's operating profit was at N213.2 billion in 2023, a growth of 82% from N117.44 billion in 2022, while the company's operating profit margin increased to  29% in 2023 from 28% in 2022.

BUA Foods Plc announced N18.89 billion in finance charges in 2023, which signifies an increase of 116% from N8.68 billion in 2022, as the Finance Exchange loss was at N73.6 billion in 2023.

BUA Foods Plc announced N120.8 billion profit before tax in 2023, a growth of 12.6% from N107.2 billion that was reported in 2022 as profit before tax margin, which stood at 16.6% in 2023 from 25% in 2022.

BUA Foods Plc's profit after tax grew by 22% to N111.5 billion in 2023 from N91.3 billion in 2022, while the Earnings per Share (EPS) grew by 22% to N6.20 in 2023 from N5.07 in the corresponding period.

BUA Foods Plc's total assets increased to N734 billion as of December 2023, representing an increase of 21% from N607.2 billion reported in 2022, driven largely by strategic transactions in trade and other receivables.

BUA Foods Plc's total assets showed that total non-current assets increased to N358.9 billion in 2023 from N330.55 billion in 2022, while total current assets stood at N375.19 billion in 2023 from N276.67 billion in 2022.  

BUA Foods Plc's total liabilities increased by 25% to N472.5 billion as of December 31, 2023, from N376.2 billion reported in 2022FY.

BUA Foods Plc's total equity increased to N261.4 billion as of December 31, 2023, from N376.2 billion in 2022, mainly due to a significant growth of 13%  in retained earnings to N253.4 billion as of December 31, 2023.

BUA Foods Plc's stock price increased steadily to close on February 25, 2024, at N379.9 per share.

In 2024, the stock price of BUA Cement is reported to have increased by 96.4%. The stock price opened for trading this year at N193.4 per share to reach its 52-week high on February 25, 2024, at per share.