BUA Foods’ third quarter 2023 profit surges 54% to N106bn

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BUA Foods consolidated its leadership position in the nation’s fast moving consumer goods sub sector as it recorded improved performance across the major metrics going by the recently announced unaudited financial statement for the period ended 30 September 2023.

According to the financial statement released through the Nigerian Exchange Group (NGX), BUA Foods made a total of N524.43 billion as revenue in the first nine months of 2023, amounting to an increase of 81 percent over N289.82 billion realised in similar period in 2022.

BUA Foods offers the FCMG sub-sector products such as sugar, flour, pasta and rice, with its brands widely accepted across different markets.

Cost of sales mirrored the soaring inflation in the country as it increased by 74.1 percent to N340.65 billion as of September 2023 compared to N195.64 billion in the corresponding period of 2022. Gross profit was up by 95.1 percent to N183.78 billion during the period this year, as against N94.18 billion recorded in the same period in 2022.

The nine-month profit margin improved to 35 percent, up from 32.5 percent in the corresponding period of 2022.

Sales and distribution expenses gulped N20.27 billion within the first nine months of this year, compared to N10.35 billion as of September 2022, representing an increase of 95.8 percent. Operating profit for the period stood at N156.88 billion, amounting to an increase of 94.5 percent when compared to N80.66 billion recorded as of September 2022.

Ayodele Abioye, managing director of the firm expressed his satisfaction on the nine-month performance of the company.

He said: “We are pleased to report a strong and successful fiscal YTD performance for BUA Foods having delivered strong top and bottom line returns across business portfolios and key financial metrics. We have experienced double-digit growth within the period with revenue YTD up by 81% and PAT by 54%, underscoring the strength of our business strategy, dedication of our exceptional team and support of our strategic partners. These were achieved despite the complexities presented by rising inflation, high interest rate resulting in pressure on consumer income, and Naira depreciation which led to FX losses.

“Clearly, BUA Foods Plc. has not only weathered the storm but has thrived. We have strategically navigated challenges by embracing change, doubling down on efficiency, and carefully optimizing costs without conceding our commitment to quality and service. Moreover, our focused investments in expansion projects are on course, providing a solid foundation for further growth and competitiveness. We remain excited about the prospects that lie ahead despite the headwinds, and confident in our business resilience for a sustained positive momentum.”

Its share price closed today at N202.80 per share.

Culled from THE NIGERIAN OBSERVER.