BUA Foods Plc has disclosed a significant uptick in profits, reporting a net profit of N111.5 billion after tax for the fiscal year concluding on December 31, 2023. This marks a notable increase from the N91.34 billion recorded in the preceding financial year of 2022, representing a 22 percent growth.

The unaudited results, made public on the Nigerian Exchange Limited (NGX), demonstrate a considerable surge in profit before tax, which rose by 12.6 percent to N120.8 billion in 2023, compared to N107.2 billion in 2022.

Benefiting from diversified and scalable operations, BUA Food Plc achieved substantial revenue growth, reaching N728.5 billion, a significant increase of 74 percent from its 2022 earnings of N418.3 billion, despite facing global economic challenges. Gross earnings also witnessed a substantial rise of 89 percent, amounting to N251.32 billion. Additionally, earnings per share experienced a growth of 22 percent, rising from N5.07 in 2022 to N6.20 by the conclusion of 2023.

Moreover, as part of the evaluation during the period analyzed, there was a minor adjustment in the selling price, leading to an increase in the gross profit margin by 280 basis points, reaching 34.5 cents.

Ayodele Abioye, the Managing Director at BUA Foods said, “We are proud of the solid performance recorded despite a persistent and challenging macro environment.

“BUA Foods delivered strong growth despite the persistent devaluation of the naira during the period which led to a substantial and negative impact of foreign exchange losses.”

Notwithstanding the pressure on operating profit margin, which decreased to 82 percent, the business exhibited resilience, achieving a bottom-line growth of 22 percent to N111.5 billion.

“Our expansion strategies across all frontiers continue to crystallise in supporting growth. We remained committed to accelerating alternative and local raw materials sourcing delivery across all our operating units. This includes the Backward Integration Policy project for our sugar development as a softening opportunity to rely less on forex.

“As we continue to look ahead, our integrated supply chain execution strategy will continue to be strengthened to sustain the delivery of growth across our financial metrics.

“We are confident in our plans for the year 2024 in the face of the business uncertainties. BUA Foods remains committed to creating long-term value for all stakeholders and operationalising its creed to nourish lives and promote food security.”